3. You have been given the following return data, ?, on three assets A, B, and cover the period 2021-2024. Using these assets, you have isolated three investment alternatives: a. Calculate the average portfolio return for each of the three alternatives. b. Calculate the standard deviation of returns for each of the three alternatives. c. On the basis of your findings in parts a and b, which of the three investment alternatives would you recommend? Why? Review Only Click the icon to see the Worked Solution. a. Calculate the portfolio return over the 4-year period for each of the 3 alternatives. Alternative 1: % (Round to two decimal places.) Alternative 2: % (Round to two decimal places.) Alternative 3: % (Round to two decimal places.) b. Calculate the standard deviation of returns over the 4-year period for each of the 3 alternatives. Alternative 1: % (Round to three decimal places.) Alternative 2: % (Round to three decimal places.) Alternative 3 % (Round to three decimal places.) c. On the basis of your findings in parts a and b, which of the 3 investment alternatives would you recommend? Why? (Select the best choice below.) O A. Alternative 1 has the highest average return; therefore, it is the most attractive alternative. O B. Alternative 3 has positively correlated assets; therefore, it is the least risky. O C. Alternative 3 is the best choice: it is perfectly negatively correlated and has the least risk. OD. Alternative 2 is the best choice: it is perfectly negatively correlated and has the least risk. 2: Data Table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Year 2021 2022 2023 2024 Expected Return Asset A Asset B Asset C 8% 10% 4% 10% 8% 6% 12% 6% 8% 14% 4% 10% 3: Data Table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Alternative 1 Investment 100% of asset A 40% of asset A and 60% of asset B 40% of asset A and 60% of asset C 2 3