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Business, 17.04.2020 18:24 18sofia18

Information concerning the allocation of loan portfolios to different market sectors is given below:
Allocation of Loan Portfolios in Different Sectors (%)
Sectors National Bank A Bank B
Commercial 30% 50% 10%
Consumer 40 30 40
Real Estate 30 20 50
Bank A and Bank B would like to estimate how much their portfolios deviate from the national average.
a. Which bank is further away from the national average?
b. Is a large standard deviation necessarily bad for anFI using this model?

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