Use the returns for the 3 assets below to answer the following questions.

Period	Asset 1	Asset 2	Asset 3
1	0.5%	-2.9%	-4.2%
2	9.5%	22.4%	2.8%
3	5.5%	22.1%	4.3%
4	-7.9%	-2.3%	-3.6%
5	-2.3%	-5.9%	-8.8%
6	5.2%	12.8%	9.0%
7	3.6%	4.9%	14.7%
8	-4.8%	-4.9%	13.0%
9	-0.9%	8.5%	-1.3%
10	14.4%	12.0%	26.9%
11	-1.9%	-17.9%	3.5%

2. Calculate the average return per period, the geometric (compounded) mean return, and the standard deviation of returns for each of the three assets.

3. Using your calculations in #2, compute the coefficient of variation for each of the three assets. Based on the coefficient of variation and the information in #2, which asset would you choose to invest in? Why?

4. Compute the average returns and standard deviation of the following portfolios over the 11 periods:

a. Portfolio 1: Invested equally in Asset 1 and Asset 2

b. Portfolio 2: Invested equally in Asset 1 and Asset 3

c. Portfolio 3: Invested equally in Asset 1, Asset 2, and Asset 3

d. In which one of the portfolios would you prefer to invest? Why?