5–13 Portfolio analysis You have been given the return data shown in the first table on three assets—F, G, and H—over the period 2004–2007.

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

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?

Expected return Year Asset F Asset G Asset H 2004 16% 17% 14% 2005 17 16 15 2006 18 15 16 2007 19 14 17