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If past history is a good indicator of future performance, what are the expected return on capital and standard deviation of return on capital for

image text in transcribed If past history is a good indicator of future performance, what are the expected return on capital and standard deviation of return on capital for the merged entity?

13.33%; 11.67%

13.33%, 28.33%

15.00%; 2.50%

15.00%, 27.0%

12.73%; 15.00%

What is the extent to which diversification reduces the overall risk?

Question 27 options:

None!

9%

41%

52%

91%

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