Question: You have been given the following return data Using these assets, you have isolated three investment alternatives:Alternative Investment 1 100% of asset A 2 60%
You have been given the following return data Using these assets, you have isolated three investment alternatives: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. 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?
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