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. Using these? assets, you have isolated the three investment alternatives shown in the following? table
F G H
2016 15% 16% 13%
2017 16% 15% 14%
2018 17% 14% 15%
2019 18% 13% 16%
Alternative: 1. 100%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?