Expected return data shown in the first table on three asset

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Reference no: EM13910830

Portfolio analysis You have been given the expected return data shown in the first table on three assets-F, G, and H- over the period 2016-2019. Expected return Asset F 2016 16%, 2017 17% 2018 18% 2019 19%- Asset G 2016 17% 2017 16% 2018 15% 2019 14% - Asset H 2016 14% 2017 15% 2018 16% 2019 17%

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

Alternative investments 1- 100% of asset F Alternative 2 50% of asset F and 50% of asset G Alternative 3 50% of asset F and 50% of asset H

a. Calculate the expected 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 recommend? why?

Reference no: EM13910830

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