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Portfolio analysis You have been given the expected return data shown in the first table on three assetsF, G, and H-over the period 2016-2019: E

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Portfolio analysis You have been given the expected return data shown in the first table on three assetsF, G, and H-over the period 2016-2019: E Using these assets, you have isolated the three investment alternatives shown in the following table: a. Calculate the average 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 think performed better over this period? Why? (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Year 2016 2017 2018 2019 Asset F 13% 14% 15% 16% Expected Return Asset G 14% 13% 12% 11% Asset H 11% 12% 13% 14% Alternative Investment 1 2. 100% of asset F 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H 3 Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required return for an asset with a beta of 0.32 when the risk-free rate and market return are 5% and 11%, respectively. b. Find the risk-free rate for a firm with a required return of 13.040% and a beta of 0.61 when the market return is 16%. c. Find the market return for an asset with a required return of 19.485% and a beta of 1.92 when the risk-free rate is 10%. d. Find the beta for an asset with a required return of 12.403% when the risk-free rate and market return are 8% and 11.7%, respectively

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