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Benefits of diversification Sally Rogers has decided to invest her wealth equally across the following three assets: . What are het expected returns and the
Benefits of diversification Sally Rogers has decided to invest her wealth equally across the following three assets: . What are het expected returns and the risk from her investment in the three assets? How do they compare with investing in asset Malone? Hint Find the standard deviations of asset M and of the portfolio equally invested in assets M N and O. b. Could Sally reduce her total risk even more by using assets M and N only, assets M and only, or assets N and O only? Use a 50/50 split between the asset pairs, and find the standard deviation of each asset pait a. What is the expected retum of investing equally in all three assets M, N, and o? % Round to two decimal places) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) 26% States Boom Normal Recession ASM RemAN Het As Rotum 10% 19 290 8% 129 8% 25 10% 2396 Enter your answer in the answer box Print Done 11 parts Tema
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