23. Benefits of diversification Sally Rogers has decided to invest her wealth equally across the following three assets. What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset Malone? Hint: Find the standard deviations of asset Mand of the portfolio equally invested in assets M, N, and o. State of the Economy Boom Probability of Economic State 30% Return on Asset M Return on Asset N Retum on Asset 0 12% 19% 2% Normal 50% 8% 11% 8% Recession 20% 2% -2% 12%