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Homework = Question 8, P8-24 (similar to) Part 1 of 12 HW Score: 46.3%, 4.17 of 9 points O Points: 0 of 1 a. What is the expected return of investing equally in all three assets M, N, and O? % (Round to two decimal places.) Save Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: a. What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset M alone? Hint Find the standard deviations of asset M and of the portfolio equally invested in assets M, N, and O. b. 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? Use a 50/50 split between the asset pairs, and find the standard deviation of each asset pair.

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Benefits of diversification Saly Rlogers has decided to inveut ter whaith equally across the following Evere assets. the portolio equaly imvested in assets M,N, and O. deviation of each asset pari. 2. What is the expectes retum of investing equally in al three assets M,N, ans O ? 6. (Mound to two decimai places) Data table (Click on the following icon 0 in order to copy its contents into a spreadsheet.) Benefits of diversification. Saly Rogers has docised to invost her woath equaly acrose the following throe assets: the portolio equally invested in assets M,N, and O deviation of esch asset pair. What is the expecled retum of investing equaly in at three atspts M,N, and on 5. (Round no two decimal places.)