You have been given the following return data:

Expected Return Year Asset A Asset B Asset C 2021 7% 8% 2% 2022 9% 6% 4% 2023 11% 4% 6% 2024 13% 2% 8%

on three assets-A, B, and C over the period 2021--2024

Using these assets, you have isolated three investment alternatives:

Alternative Investment 1 100% of asset A 2 50% of asset A and 50% of asset B 3 50% of asset A and 50% of asset C

a. Calculate the average portfolio return for each of the three alternatives.

b. Calculate the standard deviation of returns 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?