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Consider two local banks. Bank A has 100 loans outstanding, each for $1.0 million, that...

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Consider two local banks. Bank A has 100 loans outstanding, each for $1.0 million, that it expects will be repaid today. Each loan has a 5% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $100 million outstanding, which it also expects will be repaid today. It also has a 5% 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. a The expected overall payoff of Bank A is $ million (Round to the nearest integer.) The expected overall payoff of Bank B is $ million. (Round to the nearest integer.) b. The standard deviation of the overall payoff of each bank. The standard deviation of the overall payoff of Bank Ais %. (Round to two decimal places.) The standard deviation of the overall payoff of Bank B is %. (Round to two decimal places.)

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