The Chahad Bank Wants to Open a New Branch in a Distant

question 54

Multiple Choice

The Chahad Bank wants to open a new branch in a distant city with very different economic conditions.Currently,the bank has an expected return of 15% with a standard deviation of 7%.The new branch is expected to have a return of 20% with a standard deviation of 10%.The correlation between the bank's returns and the returns from the new branch is -0.3.The new branch is expected to contribute 10% of the bank's revenues.What is the standard deviation of returns for the bank if they add the new branch? (Round your answer to the nearest 0.1%)

• A)36.9%
• B)6.1%
• C)50.3%
• D)7.1%
• E)6.7%

---

Definitions:

Blood Specimen

A sample of blood taken for testing, analysis, or use in medical diagnosis.

Tourniquet

A device used to apply pressure to a limb or extremity in order to limit but not stop the flow of blood, commonly used in medical emergencies or surgeries.

Hematology

The branch of medicine involved with the study and treatment of blood diseases and the organs involved in forming blood.

Enzyme-Linked Immunosorbent Assay

A laboratory technique used for detecting and quantifying substances such as peptides, proteins, antibodies, and hormones.