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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

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

  1. Calculate the expected return over the 4-year period for each of the three alternative
  2. Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.
  3. Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.
  4. On the basis of your findings, which of the three investment alternatives do you recommend? Why?

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