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Your bank is considering acquiring a new branch office from another bank Given the following data please clculate the sharp ratio for your bank BEFORE
Your bank is considering acquiring a new branch office from another bank Given the following data please clculate the sharp ratio for your bank BEFORE the acquisition
| Expected return: New branch office | 12.50% |
| Expected return: Existing facilities | 10.00% |
| Standard Deviation: New branch office | 7.50% |
| Standard Deviation: Existing facilites | 5.00% |
| Correlation coefficient with other services | 0.48 |
| % of total assets: New branch office | 20.00% |
| % of total assets: Existing facilities | 80.00% |
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
