1- What is the expected return of a portfolio of 50% asset M and 50% asset N?

% (Round to two decimal places.)

2- What is the expected return of a portfolio of 50% asset M and 50% asset O?

% (Round to two decimal places.)

3- What is the expected return of a portfolio of 50% asset N and 50% asset O?

% (Round to two decimal places.)

4- What is the standard deviation of a portfolio of 50% asset M and 50% asset N?

% (Round to two decimal places.)

5- What is the standard deviation of a portfolio of 50% asset M and 50% asset O?

% (Round to two decimal places.)

6- What is the standard deviation of a portfolio of 50% asset N and 50% asset O?

% (Round to two decimal places.)

7- Could Sally reduce her total risk even more by using assets M and N only, assets M and O only, or assets N and O only? (Select the best response.)

A. No, none of the portfolios using a 50-50 split reduce risk.

B. Yes, a portfolio of 50% of asset M and 50% of asset N could reduce the risk to 1.49%.

C. There is not enough information to answer this question.

D. Yes, a portfolio of 50% of asset M and 50% of asset O could reduce the risk to 1.49%.

i X Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 30% 46% 24% Asset M Return 12% 9% 0% Asset N Return 21% 14% 1% Asset O Return 0% 9% 12% 17 Print Done