Question: Can you please show the work to better understand it!!! ABC Company, an American mining firm is contemplating a big construction project in the heart
Can you please show the work to better understand it!!!
ABC Company, an American mining firm is contemplating a big construction project in the heart of Congo River basin in Africa. ABC's expected returns from their existing operations are 10% with a standard deviation of 20%. The African project promises a return of 25% with a standard deviation of 30%. They have $60 billion invested in existing operations but expect a $40 billion investment in Africa. If the correlation is 0.80 compute the expected return and the standard deviation of the combined operations
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