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Expected Return Year Asset F Asset G Asset H 2016 16% 17% 14% 2017 17 16 15 2018 18 15 16 2019 19 14 17

Expected Return
Year Asset F Asset G Asset H
2016 16% 17% 14%
2017 17 16 15
2018 18 15 16
2019 19 14 17
Using these assets, you have isolated the three investment
Alternatives shown in the following table
Alternative Investment
1 100% of F
2 50% of f and G
3 50% of f and H
a. calculate the expected return over the 4 year period for all three alternatives
b. calculate the standard deviation of returns ov the 4 year periof for each of the three alternatives
c. Use your finding in part a and b to calculate the coefficient of variation for the three alternatives
d. on the basis of your findings, which of the three investment alternaives do you recommend, why?

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