Expected Returns and Risk from Investment Assignment | Homework For You
January 31st, 2020
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 N and O alone?
Hint: Find the standard deviations of asset M and of the portfolio equally invested in assets States Probability Asset M Return Asset N Return Asset O Return Boom 13% 30% 2270 19% 13% Recession 5% 2%. Get Finance homework help today