In the Basel II Standardized Approach for operational risk, the beta factor serves as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that business line. Which of the following lines has the highest beta factor?

 

　　A.     Corporate finance

 

　　B.     Retail banking

 

　　C.     Commercial banking

 

　　D.     Asset management.

 

　　Answer: A

 

　　According to the following table about the relationship between business line and beta factor,

 

　　Business Line                    Beta Factor

 

　　Corporate Finance             18%

 

　　Trading and sales               18%

 

　　Retail banking                    12%

 

　　Commercial banking           15%

 

　　Payment, settlement          18%

 

　　Agency services                15%

 

　　Asset management            12%

 

　　Retail brokerage                12%

 

　　As a result, the answer is A.