Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: ${?}^7.$ 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 $O.$

What is the expected return of investing equally in all three assets $M,N,$ and $O?$

$\%($Round to two decimal places.$)$

What is the expected return of investing in asset $M$ alone?

$\%($Round to two decimal places.$)$

What is the standard deviation of the portfolio that invests equally in all three assets $M,N,$ and $O?$

$\%($Round to two decimal places.$)$

What is the standard deviation of asset M$?$

$\%($Round to two decimal places.$)$

By investing in the portfolio that invests equally in all three assets M$,$ N$,$ and O rather than asset M alone, Sally can benefit by increasing her return by $\%$ and decreasing her risk by $\%.($Round to two decimal places.$)$

$7$: Data Table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$States$,$Probability,Asset M Retmrn,Asset N Return,Asset O Return$],[$Boom$,33\%,13\%,23\%,1\%$