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You have been given the following return data on three assetslong dashF, G, and H long dashover the period 2018minus2021 (Click on the icon located

You have been given the following return data on three

assetslong dashF, G, and H long dashover the period 2018minus2021

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Expected Return (%)

Year

Asset F

Asset G

Asset H

2018

15

17

14

2019

16

16

15

2020

17

15

16

2021

18

14

17

Using these assets, you have isolated three investment alternatives:

Alternative

Investment

1

100 % of asset F

2

55 % of asset F and 45 % of asset G

3

55 % of asset F and 45 %of asset H

a. Calculate the portfolio 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. 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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