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. What is the expected retum of investing equally in all three assets M, N, and o? % (Round to two decimal places.) w States Boom Normal Probability 31% 54% Asset M Return 11% 8% Asset N Return 21% 13% Asset Return - 1% 8% Recession 15% - 1% 1% 11%