Question 18 ABC.Inc needs to choose the company in Characteristics of proposed project Existing If located If located business in the U.S. in the U.K. Proportion to totTfirm size 50% 50% 50% Mean expected annual return on investment ,40 20 20 Standard deviation of expected annual returns on investment .10 .08 .12 Correlation of expected annual returns on investment with returns of prevailing U.S. business 1.90 .20 OU.K. because the portfolio combining the company in Scanerton