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please answer all 5 parts of the question Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets:
please answer all 5 parts of the question
Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: 5. 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 Mand 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? % (Round to two decimal places.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 26% 50% 24% Asset M Return 14% 12% 6% Asset N Return 23% 16% 3% Asset O Return 6% 12% 14% Print DoneStep by Step Solution
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