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

Expected return

Year          Asset F               Asset G             Asset H

2016         16%                    17%                    14%

2017          17                       16                       15

2018          18                        15                       16

2019           19                       14                       17

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

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 3 alternatives.

b.) Calculate the standard deviation of returns over the 4 year period for each of the three alternatives.

c.) Use your findings in parts A & B to calculate the coefficient of variation for each of the three alternatives.

d.) On the basis of your findings, which of the three investment alternatives do you recommend? Why?