P5.5 You have been given the following return data on 3 assets-F, G, and H-over the period 2012-2015. Expected Return (%) Year Asset F Asset G Asset H 2012 16 17 14 2013 17 16 15 2014 18 15 16 2015 19 14 17 Using these assets, you have isolated three investment alternatives: Alternative Investment 100% of asset F 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H

a. Calculate the portfolio return over the four-year period for each of the three alternatives.

b. Calculate the standard deviation of returns over the four-year period for each of the three alternatives.

c. On the basis of your findings in parts a and

b, which of the three investment alterna- tives would you recommend? Why?