The following statistics and estimated 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 return = 8%

Exisiting 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? Please show work.