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5. Portfolio analysis You have been given the expected return data shown in the first table on three assets F, G, and Hover the period

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5. Portfolio analysis You have been given the expected return data shown in the first table on three assets F, G, and Hover the period 2016-2019: 1 Using these assets, you have isolated the three investment alternatives shown in the following table: a. Calculate the average return over the 4-year period for each of the three alternatives. b. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives. c. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives. d. On the basis of your findings, which of the three investment alternatives do you think performed better over this period? Why? a. The expected return over the 4-year period for alternative 1 is 11.5 %. (Round to two decimal place.) The expected return over the 4-year period for alternative 2 is 10.5 %. (Round to two decimal place.) The expected return over the 4-year period for alternative 3 is %. (Round to two decimal place.) 10.5 b. The standard deviation of returns over the 4-year period for alternative 1 is 1.24 %. (Round to two decimal places.) The standard deviation of returns over the 4-year period for alternative 2 is 0 %. (Round to two decimal places.) The standard deviation of returns over the 4-year period for alternative 3 is %. (Round to two decimal places.) c. The coefficient of variation for alternative 1 is (Round to three decimal places.) The coefficient of variation for alternative 2 is (Round to three decimal places.) The coefficient of variation for alternative 3 is (Round to three decimal places.) d. On the basis of your findings, which of the three investment alternatives do you recommend? Why? is the best choice because the assets are (2) (Select the best answers Alternative (1) from the drop-down menus.) 1: Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Asset H 8% Year 2016 2017 2018 2019 Asset F 10% 11% 12% 13% Expected Return Asset G 11% 10% 9% 8% 9% 10% 11% 2: Data Table Alternative 1 Investment 100% of asset F 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H

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