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Answer the following questions regarding analysing loan portfolio information, show your workings for the calculation: a. Use the following information to establish how much Bank A's loan portfolio deviates from the national average: ( 2 marks) b. Assume the standard deviation calculated in part a. of this question for Bank A is very large compared to the standard deviation of other banks. Is it necessarily bad for Bank A? (2 marks) c. A sample of 7,500 customers of similar size and activity have been observed. On average 105 have defaulted on their obligations per year and only 30% of the outstanding debt could be recovered. The average exposure per customer is $35,000. Use the ACRA principle and calculate the total expected loss and the "credit risk premium" per customer. (2 marks) Answer the following questions regarding analysing loan portfolio information, show your workings for the calculation: a. Use the following information to establish how much Bank A's loan portfolio deviates from the national average: ( 2 marks) b. Assume the standard deviation calculated in part a. of this question for Bank A is very large compared to the standard deviation of other banks. Is it necessarily bad for Bank A? (2 marks) c. A sample of 7,500 customers of similar size and activity have been observed. On average 105 have defaulted on their obligations per year and only 30% of the outstanding debt could be recovered. The average exposure per customer is $35,000. Use the ACRA principle and calculate the total expected loss and the "credit risk premium" per customer. (2 marks)

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