Which of the following is TRUE concerning expected loss and unexpected loss from a bank loan portfolio?
  A. Expected loss > unexpected loss.
  B. Expected loss < unexpected loss.
  C. Indeterminate.
  D. Expected loss = unexpected loss.
  Answer:C
  Based on the relative magnitudes of expected loss and its standard deviation, i.e. unexpected loss, expected loss may be greater, less or equal to unexpected loss. Without further information, 'indeterminate' is the best answer choice.