Question
Please use excel. I can learn from that!!! Portfolio analysis - You have been given the expected return data shown in the first table on
Please use excel. I can learn from that!!!
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 | 11% | 12% | 9% |
2017 | 12% | 11% | 10% |
2018 | 13% | 10% | 11% |
2019 | 14% | 9% | 12% |
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 average return over 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?
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