You have been given the expected return data shown in the first table on 3 assets- F, G and H over the period 2016-2019.

F G H

201613% 14% 11%

201714% 13% 12%

2018 15% 12% 13%

2019 16% 11% 14%

Using these assets you have isolated the three investment alternatives shown in the following

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 alternatives.

b. Calculate the standard deviation of returns over the four year period for each of the alternatives.

c. Use your findings in parts a and b to calculate the coefficient of variation for each of the 3 alternatives.

d. On the basis of your findings which of the three investment alternatives do you recommend and why?