You have been given the expected return data shown in the first table on three assetsF, G,

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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.

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?

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Principles Of Managerial Finance

ISBN: 9781292018201

14th Global Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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