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An American MNC is contemplating a big construction project in the heart of Congo River basin in Africa. The MNC's expected returns from the existing

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An American MNC is contemplating a big construction project in the heart of Congo River basin in Africa. The MNC's expected returns from the existing operations are 20% with a standard deviation of 20%. The African project promises a return of 40% with a standard deviation of 30%. They have $60 bjlion invested in existing operations but expect a $40 billion investment in Africa. If the correlation is -0.80 compute the expected return and the standard deviation from the combined operations. (5+10)

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