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Currently, the bank has an expected return of 15% with a standard deviation of 7%. The new branch is expected to have a return of
Currently, the bank has an expected return of 15% with a standard deviation of 7%. The new branch is expected to have a return of 20% with a standard deviation of 10%. The correlation between the bank's returns and the returns from the new branch is -0.3. The new branch is expected to contribute 10% of the bank's revenues. What is the standard deviation of returns for the bank if they add the new branch? (Round your answer to the nearest 0.1%)
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