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A typical branch banking organization has complete centralization of authority has complete decentralization of authority O has partial decentralization of authority O is completely operated by regulators. O is completely operated by shareholders. Question 9 0.67 pts New bank is planning to set up a new branch. It expects the new branch to generate 10 percent of the total business of the bank after it is opened. The bank expects the returns on this branch to be 30 percent with a standard deviation of 5 percent. Currently the bank has a 5 percent rate of return with a standard deviation of 4 percent. The correlation between the banks current returns and the returns on the new branch is expected to be O.25. What is the banks total expected return after adding this branch? 15 percent O 7.5 percent O 12 percent O 14.4 percent O 15.5 percent

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Answer #1

8)

A bank is a total collection of its branches. Branches carry out the total operations of the bank. Bank branches are headed by the branch managers. Branch managers have some authority beyond which they cannot take decisions.

Hence, correct option is “has partial decentralization of authority”

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