The following statistics and estimates 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%

Existing banks expected return =10% Standard deviation of existing banks 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 =+ .48

What will happen to Big Moons total expected return and overall risk if the proposed new branch project is adopted?

Please show how to solve on excel and give explanation, thank you!