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Business, 19.03.2021 05:00 jadenmenlovep7s7uj

Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three​ assets: LOADING 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. What is the expected return of investing equally in all three assets​ M, N, and​ O?

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