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    Financial Institutions Management
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    Exam 11: Credit Risk: Loan Portfolio and Concentration Risk
  5. Question
    The Variance of Returns of a Portfolio of Loans Normally
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The Variance of Returns of a Portfolio of Loans Normally

Question 9

Question 9

True/False

The variance of returns of a portfolio of loans normally is equal to the arithmetic average of the variance of returns of the individual loans.

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