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Year Asset F Asset G Asset H Alternative Investment 2017 11 12 15 2018 8 9 18 1 100% of asset F 2019 5 21
Year | Asset F | Asset G | Asset H | Alternative | Investment | ||
2017 | 11 | 12 | 15 | ||||
2018 | 8 | 9 | 18 | 1 | 100% of asset F | ||
2019 | 5 | 21 | 21 | 2 | 75% of asset F and 25% of asset G | ||
2020 | 14 | 6 | 12 | 3 | 50% of asset F and 50% of asset H | ||
A. Calculate the expected return over the 4-year period for each of the three alternative | |||||||
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 recommend? Why? |
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