Portfolio analysiS : You have been given the expected return data shown in the first table on three

assetslong dash F, G, and H long dash over the period 2016-2019:

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

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?

Alternative Investment

1 100% of asset F

2 50% of asset F and 50 of asset G

3 50% of asset and 50% of asset H

Expected Return

Year Asset F Asset G Asset H

2016 14% 15% 12%

2017 15% 14% 13%

2018 16% 13% 14%

2019 17% 12% 15%