• Home
  • Solution Library
  • calculate the asset allocation proportion of banks relative to national bank average

Solution Library

Calculate The Asset Allocation Proportion Of Banks Relative To National Bank Average

Question

A.                               National Banks        Bank A             Bank B
Real Estate Loans        60 percent             30 percent        56 percent
Consumer Loans          20 percent            30 percent        28 percent
Commercial Loans        20 percent            10 percent        16 percent

1. What is Bank A’s standard deviation of its asset allocation proportions relative to the national banks average?
    a. 7.23 percent.
    b. 10.89 percent.
    c. 18.71 percent.
    d. 19.15 percent.
    e. 27.36 percent.

2. What is Bank B’s standard deviation of its asset allocation proportions relative to the national banks average?
    a. 14.16 percent.
    b. 33.33 percent.
    c. 5.66 percent.
    d. 3.00 percent.
    e. 1.50 percent.

3.  If Bank A’s average return on its loan portfolio is lower than that of Bank B’s,
    a. its risk-adjusted return is higher than Bank B’s.
    b. its risk-adjusted return is lower than Bank B’s.
    c. its standard deviation is lower than Bank B’s.
    d. its standard deviation is higher than Bank B’s.
    e. Answers b and d

Summary

The question belongs to Finance and it is about calculating two banks’ standard deviation of their asset allocation proportions relative to national bank average. The calculations have been given in the solution in detail.

Total Word Count 90

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.