Question: You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2016-2019: Year Asset F
You have been given the expected return data shown in the first table on three assetsF, G, and Hover the period 2016-2019:
| Year | Asset F | Asset G | Asset H |
| 2016 | 13% | 14% | 11% |
| 2017 | 14% | 13% | 12% |
| 2018 | 15% | 12% | 13% |
| 2019 | 16% | 11% | 14% |
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.The expected return over the 4-year period for alternative 1 is Blank 1. Fill in the blank, read surrounding text. %. (Round to two decimal place.)
The expected return over the 4-year period for alternative 2 is Blank 2. Fill in the blank, read surrounding text. %. (Round to two decimal place.)
The expected return over the 4-year period for alternative 3 is Blank 3. Fill in the blank, read surrounding text. %. (Round to two decimal place.)
b.The standard deviation of returns over the 4-year period for alternative 1 is Blank 4. Fill in the blank, read surrounding text. %. (Round to two decimal places.)
The standard deviation of returns over the 4-year period for alternative 2 is Blank 5. Fill in the blank, read surrounding text. %. (Round to two decimal places.)
The standard deviation of returns over the 4-year period for alternative 3 is Blank 6. Fill in the blank, read surrounding text. %. (Round to two decimal places.)
c.The coefficient of variation for alternative 1 is Blank 7. Fill in the blank, read surrounding text. . (Round to three decimal places.)
The coefficient of variation for alternative 2 is Blank 8. Fill in the blank, read surrounding text. . (Round to three decimal places.)
The coefficient of variation for alternative 3 is Blank 9. Fill in the blank, read surrounding text. . (Round to three decimal places.)
d.On the basis of your findings, Alternative Blank 10. Fill in the blank, read surrounding text. is the best choice.
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