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You have been given the expected return data shown in the first table on three assetslong dash?F, ?G, and Hlong dashover the period? 2016-2019: Expected

You have been given the expected return data shown in the first table on three

assetslong dash?F,

?G, and

Hlong dashover

the period? 2016-2019:

Expected Return

Year

Asset F

Asset G

Asset H

2016

12?%

13?%

???

10?%

???

2017

13?%

12?%

11?%

2018

14?%

11?%

12?%

2019

15?%

10?%

13?%

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

a.??Calculate the expected return over the? 4-year period for each of the three alternatives.

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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