Homework: Module 9: Chapters 10 and 11 - Risk and Return, Po Save Score: 0 of 1 pt 4 of 26 (4 complete) HW Score: 3.85%, 1 of 26 pts P10-20 (similar to) Quention Help Consider two local banks, Bank Ahas B0 loans outstanding, each for $10 million, that is expects will be repaid today. Each loan has a 5% probability of defaut, in which case the bank is not repaid anything. The chance of default in Independent across all the loans Bank Bhas only one of 60 milion outstanding, which it also expects will be repaid today. It also has a probability of not being repaid. Which bank faces less risk? Why? (Select the best choice below) O A. The expected payoffs are the same, but Bank Als less risky, I prefer BankA OB. The expected payoffs are the same, but Bank Ais riskier. I prefer Bank B C. The expected payoff is higher for Bank A but is riskler. I prefer Bank B. OD. In both cases the expected loan payoff is the same: 580 million x 0.95 - $76.0 milion Consequently, I don't care which bank town