P814 Portfolio analysis You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 20162019.

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 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?