SP2022 FN 310-QL Fund of Financial Management Asil Hussein 03/12/22 10:41 AM E Homework:...

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SP2022 FN 310-QL Fund of Financial Management Asil Hussein 03/12/22 10:41 AM E Homework: Chapter 8 Homework Question 10, P8-24 (similar to) Part 1 of 12 HW Score: 81.06%, 8.92 of 11 points O Polnts: 0 of 1 Save Benefits of diversification. Sally Rogers has decided invest her wealth equally across the following three assets: a. What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset Malone? 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 and N only, assets and only, or assets N and 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? % (Round to two decimal places.)

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