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Please answer all 12 parts for a thumbs up Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three
Please answer all 12 parts for a thumbs up
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. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: the portfolio equally invested in assets M,N, and O. 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.) Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: the portfolio equally invested in assets M,N, and O. 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.) 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. Data table (Click on the following icon in order to copy its contents into a spreadsheet.)Step by Step Solution
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