Benefits of diversification Sally Rogers has decided to inve

Benefits of

diversification.

Sally Rogers has decided to invest her wealth equally across the following three assets. 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.

??States

Probability

Asset M Return

Asset N Return

Asset O Return

??Boom

2525?%

1212?%

2222?%

44?%

??Normal

5151?%

1010?%

1414?%

1010?%

??Recession

2424?%

44?%

22?%

1212?%

What is the expected return of investing equally in all three assets? M, N, and? O?

___%

?(Round to two decimal? places.)

Solution

Hi, your question is not attached properly please recheck your question as detail of stock o is missing and without that it can\'t be solved.

So I request you to please repost your question we will be happy to help you at chegg.