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Delta is considering project A, which has an expected return of 7%. The return of Project A has a standard deviation of 12% per annum

Delta is considering project A, which has an expected return of 7%. The return of Project A has a standard deviation of 12% per annum and a correlation with the market of 0.8. Would you advise the management of Delta to proceed with the project? Support your answer by showing the relevant calculations.

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