Question: You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2014-2017 Expected Return Year
You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2014-2017
| Expected Return | |||
| Year | Asset F | Asset G | Asset H |
| 2014 | 11% | 13% | 14% |
| 2015 | 9 | 15 | 15 |
| 2016 | 7 | 17 | 16 |
| 2017 | 16 | 8 | 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 expected return over the 4-year period for each of the three alternative
b.Calculate the standard deviation of returns over the 4-year period for each of the three alternatives.
c.Use you 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?
Please show ALL work in EXCEL***
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