A commercial bank decides to expand its service menu to include the underwriting of new security offerings

Question:

A commercial bank decides to expand its service menu to include the underwriting of new security offerings (i.e., investment banking) as well as offering traditional lending and deposit services. It discovers that the and risk associated with these two sets of service offerings are as follows:

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...