help on question 8

Benefits of diversification. Saliy Rogers has decided to invest her wealth equally across the following three assets: a. What are her expected retums 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 tolal risk even more by using assets M and N only, assets M and O only, or assets N and O only? Use a soiso 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 ? 1. (Round to two decimal places.) Data table (Cick on the following icon o. in order so copy its contents into a spreadsheet.) Benefits of diversification. Saliy Rogers has decided to invest her wealth equally across the following three assets: a. What are her expected retums 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 tolal risk even more by using assets M and N only, assets M and O only, or assets N and O only? Use a soiso 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 ? 1. (Round to two decimal places.) Data table (Cick on the following icon o. in order so copy its contents into a spreadsheet.)