States		Probability		Asset M Return		Asset N Return		Asset O Return
Boom		32%		13%		23%		5%
Normal		45%		11%		15%		11%
Recession		23%		5%		3%		13%

a. What is the expected return of investing equally in all three assets M, N, and O?

- what is the expected return of investing in asset M alone?

- what is the standard deviation of the portfolio that invests equally in all three assets M, N, and O?

- what is the standard deviation of asset M?

- by investing in the portfolio that invests equally in all three assets M, N, and O rather than asset M alone, Sally can benefit by increasing her return by ___% and decrease her risk by ___%. (Round to 2 decimal places)

b. What is the expected return of a portfolio of 50% asset M and 50% asset N?

- what is the expected return of a portfolio 50% asset M and 50% asset O?

- what is the expected return of a portfolio 50% asset N and 50% asset O?

- what is the standard deviation of a portfolio of 50% asset M and 50% asset N?

- what is the standard deviation of a portfolio of 50% asset M and 50% asset O?