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 decreasing her risk by _____% (Round to two decimal places.)

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 C Asset O Return Asset M Return Asset N Return Probability States Boom Normal Recession 34% 46% 20% 11% 9% 3% 20% 13% 0% 3% 9% 11%