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Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: . What are her expected returns and the
Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: . 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. Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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