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Benefits of diversification. Sally Rogers has decided to invest her wealth equs y across the following three assets: a. Whal archer expected elurns and the
Benefits of diversification. Sally Rogers has decided to invest her wealth equs y across the following three assets: a. Whal archer expected elurns and the risk from the investirent in the three assets? How do they compare with investing in assol Malone? Hint: Find the standard deviations of asset Mand of the poliolio equally invcslcd in asscts M, N, and O. t. Could Sally reduce her total risk even more by using assets and Nonly, assets and only or assets. N and only use a 50/50 split between the asset pairs, and find the standard deviation of each asset pair a. What is the expecled return of investing equally in all three assets M, N, and O? * (Round lowo decimal places) i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) States Probability Asset M Return 12% 10% 18. Asset N Retum Asset O Return 22 4'5 14% 10% 12% Normal Recession Print Done Enter your answer in the answer box and then click Check Answer 11 parts remaining Clear All Check Answer > Internet Explorer
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