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. om only? Use op (Click on the following icon in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 29% 49% 22% Asset M Return 13% 10% 1% Asset N Return 24% 15% Asset O Return 1% 10% 13% 4%