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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 2014-2017 Expected Return Year

You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2014-2017
Expected Return
Year Asset F Asset G Asset H
2014 18% 12% 14%
2015 14% 16% 15%
2016 22% 8% 16%
2017 13% 17% 17%
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

Answer the following:

a) What is the expected return over the 4-year period for each of the three alternative b) What is the standard deviation of returns over the 4-year period for each of the three alternatives. c) What is the coefficient of variation for each of the three alternatives d) Which investment alternative do you recommend? Why?

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