Question: You have been given the following return data, Expected Return Year Asset F Asset G Asset H 2018 17% 16% 13% 2019 18% 15% 14%

You have been given the following return data,

Expected Return
Year Asset F Asset G Asset H
2018 17% 16% 13%
2019 18% 15% 14%
2020 19% 14% 15%
2021 20% 13% 16%

Alternative Investment
1 100% of asset F
2 55% of asset F and 45% of asset G
3 55% of asset F and 45% of asset H

F, G, and H over the period 2018 2021. Using these assets, you have isolated three investment alternatives:

a. Calculate the portfolio 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. On the basis of your findings in parts a and b, which of the three investment alternatives would you recommend? Why?

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