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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

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 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 3 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 & 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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