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The following information indicates percentage returns for stocks L and M over a 6-year period: Year Stock L Returns Stock M Returns 1 14.66% 20.97%

The following information indicates percentage returns for stocks L and M over a 6-year period:

Year

Stock L Returns

Stock M Returns

1

14.66%

20.97%

2

14.49%

18.98%

3

16.55%

16.74%

4

17.23%

14.85%

5

17.6%

12.48%

6

19.96%

10.31%

In combining [LM] in a single portfolio, stock M would receive 60% of capital funds.

Furthermore, the information below reflects percentage returns for assets F, G, and H over a 4-year period, with asset F being the base instrument:

Year

Asset F Returns

Asset G Returns

Asset H Returns

1

16.09%

17.2%

14.01%

2

17.17%

16.42%

15.46%

3

18.47%

15.03%

16.42%

4

19.05%

14.39%

17.15%

Using these assets, you have a choice of either combining [FG] or [FH] in a single portfolio, on an equally-weighted basis.

Required: Calculate the absolute percentage difference in the coefficient of variation (CV) between the stock portfolio [LM] and the portfolio which outlines the optimal combination of assets.

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