States	Probability	Asset M Return	Asset N Return	Asset O Return
Boom	26%	14%	24%	6%
Normal	46%	12%	16%	12%
Recession	28%	6%	4%	14%

I wasn't sure how to add another photo, but it asks these three questions also:

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

What is the standard deviation of a portfolio of 50% asset N and 50% asset O?

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?

A. Yes, a portfolio of 50% of asset M and 50% of asset N could reduce the risk to 1.00%.

B. No, none of the portfolios using a 50-50 split reduce risk.

C. There is not enough information to answer this question.

D. Yes, a portfolio of 50% of asset M and 50% of asset O could reduce the risk to 1.00%.

O 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 Malone? 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. a. What is the expected return of investing equally in all three assets M, N, and O? % (Round to two decimal places.) What is the expected return of investing in asset M alone? % (Round to two decimal places.) What is the standard deviation of the portfolio that invests equally in all three assets M, N, and O? % (Round to two decimal places.) What is the standard deviation of asset M? % (Round to two decimal places.) By investing in the portfolio that invests equally in all three assets M, N, and O rather than asset Malone, Sally can benefit by increasing her return by % and decrease her risk by %. (Round to two decimal places.) b. What is the expected return of a portfolio of 50% asset M and 50% asset N? % (Round to two decimal places.) What is the expected return of a portfolio of 50% asset M and 50% asset O? % (Round to two decimal places.) What is the expected return of a portfolio of 50% asset N and 50% asset O? % (Round to two decimal places.) What is the standard deviation of a portfolio of 50% asset M and 50% asset N