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Question
What is the risk (standard deviation of returns) on the bank's loan portfolio if loan returns are uncorrelated (ρ = 0)?
A. 1.41 percent.
B. 1.63 percent.
C. 0.93 percent.
D. 3.57 percent.
E. 1.18 percent.
Answer
This answer is hidden. It contains 73 characters.
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