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LG 3 P8-14 Portfolio analysis You have been given the expected return data shown in the first table on three assets-F, G, and H-over
LG 3 P8-14 Portfolio analysis You have been given the expected return data shown in the first table on three assets-F, G, and H-over the period 2016-2019. Expected return Year Asset F Asset G Asset H 2016 16% 17% 14% 2017 2018 2019 19 781 16 15 14 631 15 16 17 Using these assets, you have isolated the three investment alternatives shown in the following table. Alternative Investment 1 100% of asset F 2 50% of asset F and 50% of asset G 3 50% of asset F and 50% of asset H a. Calculate the expected 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 recommend? Why?
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