Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: 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. \begin{tabular}{|l|c|c|c|c|} \hline States & Probability & Asset M Return & Asset N Return & Asset O Return \\ \hline Boom & 27% & 12% & 23% & 0% \\ \hline Normal & 54% & 9% & 14% & 9% \\ \hline Recession & 19% & 0% & 3% & 12% \\ \hline \end{tabular}