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 2 in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 33% 48% 19% Asset M Return 12% 10% 4% Asset N Return 21% 14% 1% Asset O Return 4% 10% 12% Print Done