Question
you have been given the expected return data shown in the first table on three assets F, G, and H over the period 2019-2022. Using
you have been given the expected return data shown in the first table on three assets F, G, and H over the period 2019-2022. Using these assets, you have isolated the three investment alternatives shown in the following table:
Historical return
year asset F asset G asset H
2016 10% 11 % 8% 2017 11 % 10% 9% 2018 12 % 9 % 10% 2019 13 % 8% 11%
a.Calculate the average 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 think performed better over this period? Why?
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