You have been given the following return data, , on three assetsA, B, and Cover the period 20212024. Using these assets, you have isolated three investment alternatives:

Expected Return Year Asset A Asset B Asset C 2021 6% 11% 5% 2022 8% 9% 7% 2023 10% 7% 9% 2024 12% 5% 11%

Alternative Investment 1 100% of asset A 2 60% of asset A and 40% of asset B 3 60% of asset A and 40% of asset C

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

Alternative 1:

Alternative 2:

Alternative 3:

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?