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You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2018-2021 Year Asset F

You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2018-2021

Year

Asset F

Asset G

Asset H

2018

7

12

12

2019

10

9

9

2020

15

21

4

2021

6.5

6

12.5

Using these assets, you have isolated the three investment alternatives shown in the following table.

Alternative

Investment

1

100% of asset F

2

35% of asset F and 65% of asset G

3

50% of asset F and 50% of asset H

Calculate the expected return over the 4-year period for each of the three alternative

Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.

Use your findings in parts a and b to calculate the coefficient of variation for each of the three alternatives.

On the basis of your findings, which of the three investment alternatives do you recommend? Why?

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