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What are her expected returns and the risk from her investment in the three assests? How do they compare with investing in assest M alone?
What are her expected returns and the risk from her investment in the three assests?
How do they compare with investing in assest M alone?
Find standard deviation of assests M and of the portfolio equally invested in assets M, N, and O.
Could Sally reduce her total risk even more by using assets M and N only, assets M and O only and O only?
Use a 50/50 split between the asset pairs, and find the standard deviation of each asset pair.
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