= Homework: Chapter 8 Homework Question 7, P8-23 (simila... Part 3 of 5 HW Score: 67.59%, 6.08 of 9 points Points: 0.33 of 1 Save Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: B. 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. What is the expected return of investing equally in all three assets M, N, and O? 9.77 % (Round to two decimal places.) What is the expected return of investing in asset M alone? 8.32 % (Round to two decimal places.) Data Table What is the standard deviation of the portfolio that invests equally in all three assets M, N, and O? 1% (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) States Boom Normal Recession Probability 29% 50% 21% Asset M Return 11% 9% 3% Asset N Return 22% 13% 2% Asset O Return 3% 9% 11% Print Done Help Me Solve This View an Example Get More Help Clear All Check