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Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: a . What are her expected returns and

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 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.
a. What is the expected return 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.)
\table[[States,Probability,Asset M Returm,Asset N Return,Aset O Return],[Boom,27%,14%,25%,2%
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