Question: can someone help me with this practice problem parts a and b i do not understand Consider two local banks Bank A has 98 loans

can someone help me with this practice problem parts a and b i do not understand

Consider two local banks Bank A has 98 loans outstanding each for $10 million that it expects will be repaid today Each loan has a 7% probability of default, in which case the bank is not repaid anything the chance of default is independent across all the loans Bank Bhas only one loan of $98 million outstanding, which italo expects will be repaid today It also has a 7% probability of not being repaid Calculate the following a. The expected overall payoff of each bank b. The standard deviation of the overall payoff of each bank a. The expected overall payoff of each bank The expected overall payoff of Bank Als $3 millen (Round to the nearest stager)

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