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Benefits of diversification Sally Rogers has decided to invest her wealth equally across the folowing three assets a. What are her expected reburms and the
Benefits of diversification Sally Rogers has decided to invest her wealth equally across the folowing three assets a. What are her expected reburms and the risk from her investment in the three assets? How do they compare with investing in asset M alone? Hint Find the nvested in assets M, N, and O. standard deviations of asset M and of the portoio equal b. Could Saly reduce her total risk even more by using assets M and N only, assets M and O only, or assets N and O anly? Use a 5050 spit between the asset pairs, and find the standard deviation of each asset Asset M Return Asset N Return Asset O Return 2% 19 11% 50% 20% 12%
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