Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets. 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 nsk even more by using assets M and N onty, assets M and only or assets N and O only? Use a 5050 split between the asset pairs, and find the standard deviation of each asset pair Asset M Return Asset N Return Asset O Return States Boom Normal Recession 27% 53% 20% 11% 9% 3% 13% 1% 9% 11% a. What is the expected return of investing equally in all three assets M, N, and O? (Round to two decimal places.) What is the expected return of investing in asset M alone? % (Round to two decimal places,) What is the standard deviation of the portfolio that invests equally in all three assets M, N, and 0? % (Round to two decimal places) What is the standard deviation of asset M? (Round to two decimal places.) % and By investing in the portfolio that invests equally in all three assets M N, and O rather than asset M alone, Sal y can benefit by in decrease her risk by 1% (Round to two decimal places) b. What is the expected return of a portfolio of 50% asset M and 50% asset N? 11% (Round to two decimal places.) What is the expected return of a portfolio of 50% asset M and 50% asset O? eas ng her retu by (Round to two decimal places.) What is the expected return of a portfolio of 50% asset N and 50% asset 1% (Round to two decimal places) What is the standard deviation of a portfolio of 50% asset M and 50% asset N? (Round to two decimal places.) what is the standard deviation of a portfolio of 50% asset M and 50% a % (Round to two decimal places.) What is the standard deviation of a porttio of 50% asset N and 50% asset O? [ % (Round to two dermal places ) Click to select your answerls)