Benefits of diversification

Benefits of diversification. Sally Rogers has decided to invest her wealth equaly actoss the following three assets: a. What are her expected returns and the risk from her investment in the three assets? How do thay comparo wth invesing in asset M alone? Hint Find the standard deviatons of asset M and of the portolio equally invested in assets M,N, and O. b. Could Saby reduce her total risk oven more by using assets M and N only, assets M and O only, or assets N and O only? Use a 50/50 spit between the asset pars, and find the standard deviation of each asset pair. a. What is the expected return of investing equally in all three assets M,N, and O ? If. (Round to two decimal places.) 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 Fin 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 th devis Data table a. V (Click on the following icon D in order to copy its contents into a spreadsheet.)