Question content area top

Part $1$

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$.$Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: $.$ 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 $O?$

$\%($Round to two decimal places.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$