Asset M Return 10% States Boom Normal Recession Probability 29% 53% 18% Asset N Return 21% 12% 1% Asset O Return - 2% 7% 7% -2% 10% 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