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 are her expected returns and the risk from her investment in the three asse Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: lo they compare with investing in ass Data table What is the expected return of investi (Click on the following icon in order to copy its contents into a spreadsheet.) % (Round to two decimal places. States Boom Normal Recession Probability 30% 50% 20% Asset M Return 12% 8% Asset N Return 19% 11% - 2% Asset O Return 2% 8% 2% 12% Print Done