$8\mathrm{.}8$

Benefits of diverstication. Sally Rogers has decided to fivest her wealith equally across the following three assets: do they compare with investing in asset $M$ alone? Hint find the standard deviations of asset $M$ and of the portiolio equally invested in assets $M,N,$ and $O.$

What is the expected retum of investing equally in all three assets $M,N,$ and $O?$

$\%($Round to two decimal places.$)$

What is the expected return of investing in asset $M$ alone?

$\%($Round to two decimal places.$)$

What is the standard deviation of the portfolio that invests equally in all three assets $M,N,$ and $O?$

$\%($Round to two decimal places.$)$

What is the standard deviation of asset M$?$

$\%($Round to two decimal places.$)$

By investing in the portfolio that invests equally in all three assets $M,N,$ and $O$ rather than asset $M$ alone, Sally can benefit by increasing her retum by $\%$ and decreasing her risk by $\%.($Round to two decimal places.$)$

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$States$,,$menentin,,fscrosedm$],[$Boom$,25\%,10\%,21\%,2\%$