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States		Probability		Asset M Return		Asset N Return		Asset O Return
Boom		27%		14%		24%		2%
Normal		55%		11%		16%		11%
Recession		18%		2%		4%		14%

Benefits of

diversification.

Sally Rogers has decided to invest her wealth equally across the following three assets:

LOADING...

. 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.

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

nothing%

(Round to two decimal places.)