Question
You have been given the following return data, LOADING..., on three assetsA, B, and Cover the period 20212024. Using these assets, you have isolated three
You have been given the following return data, LOADING..., on three assetsA, B, and Cover the period 20212024. Using these assets, you have isolated three investment alternatives: LOADING....
Expected Return | |||
Year | Asset A | Asset B | Asset C |
2021 | 4% | 11% | 5% |
2022 | 6% | 9% | 7% |
2023 | 8% | 7% | 9% |
2024 | 10% | 5% | 11% |
a. Calculate the average portfolio return for each of the three alternatives.
b. Calculate the standard deviation of returns for each of the three alternatives.
c. On the basis of your findings in parts a and b, which of the three investment alternatives would you recommend? Why?
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Part 1
a. Calculate the portfolio return over the 4-year period for each of the 3 alternatives. Alternative 1: enter your response here% (Round to two decimal places.)
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