Q3.15You have been given the following return data on three assets: F, G and H and the two portfolios over the period 2013 to 2016:

Year	Asset F	Asset G	Asset H	Portfolio FG	Portfolio FH
2013	16	17	14	16.5	15
2014	17	16	15	16.5	16
2015	18	15	16	16.5	17
2016	19	14	17	16.5	18

Using these assets, you have isolated three investment alternatives:

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

Required:

1. Calculate the expected return for each of the three investment alternatives
2. Calculate the standard deviation of returns for each of the three investment alternatives
3. Based on your findings above, which of the three investment alternatives would you recommend? Justify your choice.