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will give thumbs up ! Benefits of diversification Sally Rogers has decided to invest her wealth equally across the following three assets a. What are
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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 Mand of the portfolio equally invested in assets M N and o b. Could Sally reduce her total tisk even more by using assets Mand Norly assets M and only, or assets N and only? Use a 50/50 split between the asset pairs, and find the standard deviation of each asset pair a. What in the expected return of Investing equally in all three assets M. N. and O? 1% (Round to two decimal places) Data table - (Click on the following icon in order to copy its contents into a spreadsheet) States Probability Assot M Rotin Assol N Rotun Boom 30% 1294 19% Normal 50% 0% 119 Rocession 20% 2% Assot Rotun 24 8% 12% Print Done Step by Step Solution
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