The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five-to seven-year government bond index (JPM 57 Year GBI, for short). During the period given in the table, the International Monetary Fund Germany Money Market Index (IMF Germany MMI, for short) had a mean annual total return of 4.33 percent.

Year MSCI Germany Index (%) JPM Germany 57 Year GBI (%) 1993 46.21 15.74 1994 6.18 3.40 1995 8.04 18.30 1996 22.87 8.35 1997 45.90 6.65 1998 20.32 12.45 1999 41.20 2.19 2000 9.53 7.44 2001 17.75 5.55 2002 43.06 10.27

1. Calculate the coefficient of variation for: 1. the 60/40 equity/bond portfolio described in Problem 12. 2. the MSCI Germany Index. 3. the JPM Germany 57 Year GBI. 2. Contrast the risk of the 60/40 equity/bond portfolio, the MSCI Germany Index, and the JPM Germany 57 Year GBI, as measured by the coefficient of variation.