9780078034671

return 4. The following statistics and estimates were compiled by Big Moon Bank regarding a proposed new branch office and the bank itself: Branch office expected return 15% Standard deviation of branch 8% Existing bank's expected return 10% Standard deviation of existing bank's return 5% Branch asset value as a percentage of total bank assets 16% Correlation of net cash flows for branch and bank as a whole = +0.48 What will happen to Big Moon's total expected return and overall risk if the proposed new branch project is adopted