PTOCced witn this branch office project! a new branch office in the newly an annual expected return of 12 percent 3. Forever Savings Bank estimates that building developed Washington township will yield with an estimated standard deviation of 10 percent. The bank's marketing depart- ment estimates that cash flows from the proposed Washington branch will be mildly 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? 4. The following statistics and estimates