please also solve for the standard deviation of 50-50 NO and Mo. Thanks
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. By investing in the portfolio that invests equally in all three assets M, N, and O rather than a to two decimal places.) Data Table b. What is the expected return of a portfolio of 50% asset M and 50% asset N? (Click on the following icon in order to copy its contents into a spreadsheet.) 10.54 % (Round to two decimal places.) What is the expected return of a portfolio of 50% asset M and 50% asset 0? States Boom Normal Probability 33% 52% Asset M Return 10% Asset N Return 21% Asset O Return 2% 7.04 % (Round to two decimal places.) 8% 12% 8% AF/ ni 4 / What is the expected return of a portfolio of 50% asset N and 50% asset O? 9.82 % (Round to two decimal places.) What is the standard deviation of a portfolio of 50% asset M and 50% asset N? Print Done Help Me Solve This View an Example Get More Help - Clear All Final Check 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. By investing in the portfolio that invests equally in all three assets M, N, and O rather than a to two decimal places.) Data Table b. What is the expected return of a portfolio of 50% asset M and 50% asset N? (Click on the following icon in order to copy its contents into a spreadsheet.) 10.54 % (Round to two decimal places.) What is the expected return of a portfolio of 50% asset M and 50% asset 0? States Boom Normal Probability 33% 52% Asset M Return 10% Asset N Return 21% Asset O Return 2% 7.04 % (Round to two decimal places.) 8% 12% 8% AF/ ni 4 / What is the expected return of a portfolio of 50% asset N and 50% asset O? 9.82 % (Round to two decimal places.) What is the standard deviation of a portfolio of 50% asset M and 50% asset N? Print Done Help Me Solve This View an Example Get More Help - Clear All Final Check
