You have been given the expected return data shown in the first
table on three assets—F, G, and H—over the period 2019-2022:
2016 17 18
15
2017 18 17
16
2018 19 16
17
2019 20 15
18
.Using these assets, you have isolated the three
investment alternatives shown in the following table:
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
a. Calculate the average 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 think performed better over
this period? Why?
You have been given the expected return data shown in the first table on three assets—F, G, and H—over the period 2019
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