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Use the Following Information to Answer Questions 53-55 [Reference 11-53]
-What Is Bank A's Standard Deviation of Its

Question 12

Multiple Choice

Use the following information to answer questions 53-55:  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 \begin{array} { l l l l } & \text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Loans } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans } & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array} [Reference 11-53]
-What is Bank A's standard deviation of its asset allocation proportions relative to the national banks average? Use the formula in the textbook.


A) 7.23 percent.
B) 10.89 percent.
C) 18.71 percent.
D) 19.15 percent.
E) 27.36 percent. [Refer to: 11-58]

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