Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three$$ assets: LOADING....

a$.$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$.$

b$.$Could Sally reduce her total risk even more by using assets M and N$$ only, assets M and O$$ only, or assets N and O$$ only? Use a$50/50$ split between the asset$$ pairs, and find the standard deviation of each asset pair.

Question content area bottom

Part $1$

a$.$What is the expected return of investing equally in all three assets$$ M$,$ N$,$ and$$ O$?$

$$

enter your response here$\%($Round to two decimal$$ places.$)$