Portfolio analysis-calculate standard deviation of returns

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Reference no: EM13913666

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

Asset F

2016 16%,

2017 17%

2018 18%

2019 19%-

Asset G

2016 17%

2017 16%

2018 15%

2019 14%

Asset H

2016 14%

2017 15%

2018 16%

2019 17%

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

Alternative investments 1- 100% of asset F

Alternative 2 50% of asset F and 50% of asset G

Alternative 3 50% of asset F and 50% of asset H

a. Calculate the expected 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. Use your findings in parts a and 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?

Reference no: EM13913666

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