Question $12$

$1$ pts

$$ Question Set $3>$

Suppose that an FI holds two loans with the following characteristics.

Allocation of Loan Portfolios in Different Sectors $(\%)$

$\backslash$table$[[$Aliocation of Loan Portfolios in Different Sectors $(\%)],[$Sectors$,$ National ${?}_{(}),\frac{\text{B}\text{a}\text{n}\text{k}A}{50\%},$Bank B$],[$Commercial$,30\%,30\%,],[$Consumer$,40,20,40],[$Real Estate,$30,20,50]]$

Estimate ${}_A$ and ${}_B$ using the loan allocation deviation formula.

$(A)=12\mathrm{.}25\%$;$(B)=14\mathrm{.}14\%$

$(A)=16\mathrm{.}33\%$;$(B)=14\mathrm{.}14\%$

$(A)=17\mathrm{.}32\%$;$(B)=20\mathrm{.}0\%$

$(A)=14\mathrm{.}14\%$;$(B)=16\mathrm{.}33\%$

Question $13$

$1pts$

Assume the same information as in the previous question $$ Question Set $3>.$

Which of the following observations concerning the Loan Volume$-$Based models and the Loan allocation deviation is not true?

Bank $B$ deviates from the national average more than Bank $A.$

Bank A deviates from the national average more than Bank B$.$

Deviation from the national benchmark is not necessarily bad.

FI could generate high returns by serving specialized markets, impacting the bank's portfolio deviating from the national average.