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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 alone? Hint: Find the standard deviations of asset and of
the portfolio equally invested in assets and
b Could Sally reduce her total risk even more by using assets and only, assets and only, or assets and only? Use a split between the asset pairs, and find the standard
deviation of each asset pair.
a W
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