1. Suppose you purchased ABC stock 4 month ago and your purchasing price was $40. The ABC stock price went up and down in the past 4 months: $50, $38, $ 42, and $49. Please calculate the monthly standard deviation of the stock returns.
2. A bank originates a 30 year fully amortizing FRM at an annual interest rate of 4%. 9 years later the bank’s cost of funds is 7.25%. What is the bank’s NIM on this loan?
3. Suppose a bank pays depositors 3.25% on their checking deposits. The same bank makes mortgages at 5.20%. What is the bank’s Net Interest Margin (NIM)?