You have been given the expected return data shown in the first table on three —?F, G, and H over the period? 2016-2019:
2016 10% 11% 8%
2017 11% 10% 9%
2018 12% 9% 10% 2019 13% 8% 11%
Using these? assets, you have isolated the three investment alternatives shown in the following? table
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
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?