Portfolio analysis You have been given the expected return data shown in the first table on three asset-F,G, and H over the period 2016-2017 Using these assets, you have isolated the three investment alternative shown in the following table
Expected return
Year asset F asset G asset H
2016 10% 11% 8%
2017 11% 10% 9%
2018 12% 9% 10%
2019 13% 8% 11%
Alternative investment
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
Calculate the expected return over the 4-year period for each of the three alternatives
Calculate the standard deviation of return over the 4-year period for each of the three alternatives
Use your finding in parts a and b to calculate the coefficient of variation for each of the three alternatives.
One the basis of your finding which of the three investment alternatives do you recommend? Why?
The expected return over the 4-year period for alternative 1 is ___%
The expected return over the 4-year period for alternative 2 is ____%
The expected return over the 4-year period for alternative 3 is ___%
B) the standard deviation of return over the 4-year period for alternative 1 is___%
the standard deviation of return over the 4-year period for alternative 2 is___%
the standard deviation of return over the 4-year period for alternative 3 is___%
The coefficient of variation for alternative 1 is _____
The coefficient of variation for alternative 2 is _____
The coefficient of variation for alternative 3 is _____
On the basis of your finding, which of the three investment alternatives do you recommend? Why?
Alternative____ is the best choice because the assets are___