-What Is Bank A's Standard Deviation of Its Asset Allocation

$$\begin{array} { l l l l } & \text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Loans } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans } & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array}$$
-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.

Correct Answer:

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