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a . What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset

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.
a. W
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