a$.$ 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 $O.$

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$.$ W

Data table

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