c) Hally is a private company which earns an expected return of 12% on existing operations, subject to standard deviation of 20%. The company holds no other investment. It is considering a new project which has an expected return of 16% and a standard deviation of 32% and a correlation of 0.25 with Henry existing operations. The new project will account for 25% of Henry's operations if accepted Hally uses a measure of utility to appraise risky projects. The measure used is U = 100r-S2 Where u = Utility r= percentage of expected return S = percentage of standard deviation of return Projects are accepted if they increase total utility. Is the new project acceptable? c) Hally is a private company which earns an expected return of 12% on existing operations, subject to standard deviation of 20%. The company holds no other investment. It is considering a new project which has an expected return of 16% and a standard deviation of 32% and a correlation of 0.25 with Henry existing operations. The new project will account for 25% of Henry's operations if accepted Hally uses a measure of utility to appraise risky projects. The measure used is U = 100r-S2 Where u = Utility r= percentage of expected return S = percentage of standard deviation of return Projects are accepted if they increase total utility. Is the new project acceptable