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 M alone, Sally can benefit by increasing her return by_______

and decreasing her risk by_______.

Homework: Chapter 8 Homework Save Score: 0.17 of 1 pt 1 7 of 9 (9 complete) HW Score: 89.89%, 8.09 of 9 pts P8-23 (similar to) Question Help Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: What are her expected retums and the risk from her investment in the three assets? How do they compare with investing in asset Malone? Hint Find the standard deviations asset Mand of the portfolio equally invested in assets M, N, and o What is the expected return of investing equally in all three assets M, N, and O? % (Round to two decimal places.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 30% 48% 22% Asset M Return 12% 10% 4% Asset N Return 21% 14% 1% Asset Return 4% 10% 12% Print Done Enter your answer in the answer box and then click Check