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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