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Benefits of diversiffication. Sally Rogers has decided to invest her wealth equally across the following three assets: a. What aro her expected returns and the
Benefits of diversiffication. Sally Rogers has decided to invest her wealth equally across the following three assets: a. What aro her expected returns and the risk from her investment in the theee assets? How do they compare with imvesting in asset M alone? Hint: Find the standard deviations of asset M and of the portfolo equalify invested in assets M,NcandO. b. Could Saly teduce her lotal rikk even more by using assets M and N only, assets M and O only, of assets N and O only? Use a 50 is spit between the asset pairs, and find the standard deviation of each asset pair. Data table (Cick on the following icon 0 in order fo copy its contents into a spreadsheet)
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