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i having trouble figuring formula on excel return positively correlated (with a correlation coefficient of +0.15) with the bank's other sources of cash flow. The
i having trouble figuring formula on excel return positively correlated (with a correlation coefficient of +0.15) with the bank's other sources of cash flow. The expected annual return from the bank's existing facilities and other assets is 10 percent with a standard deviation of 5 percent. The branch will represent just 20 percent of Lifetime's total assets. Will the proposed branch increase Forever's overall rate of return? Its overall risk? 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? 5. Life Is Good Financial Services has provided Good Things to Eat Groceries a pro- posal for in-store branches in two of its four Davidson locations. Good Things to Eat counterproposed opening one in-store branch in one of the two proposed locatione a test case. The locationem Uin/rosehud ae
i having trouble figuring formula on excel
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