Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets:

Data table CCTTIP (Click on the following icon in order to copy its contents into a spreadsheet.) States Probability Asset M Return Boom 34% 11% Normal 53% 8% Recession 13% -1% Print Asset N Return 21% 13% 1% Done Asset O Return - 1% 8% 11% I Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the t a. What are her expected returns and the risk from her investment in the three assets? How de and O. b. Could Sally reduce her total risk even more by using assets M and N only, assets M and Oc a. What is the expected return of investing equally in all three assets M, N, and O? 9.11% (Round to two decimal places.) What is the expected return of investing in asset M alone? 7.85% (Round to two decimal places.) What is the standard deviation of the portfolio that invests equally in all three assets M, N, and C 2.13% (Round to two decimal places.) What is the standard deviation of asset M? 3.68% (Round to two decimal places.) By investing in the portfolio that invests equally in all three assets M, N, and O rather than asset b. What is the expected return of a portfolio of 50% asset M and 50% asset N? 11.01% (Round to two decimal places.) What is the expected return of a portfolio of 50% asset M and 50% asset O? % (Round to two decimal places.)