Calculate coefficient of variation for each of alternatives

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Reference no: EM13976309

You have been given the expected return data shown in the first table on 3 assets- F, G and H over the period 2016-2019.

Expected Return

Year Asset F Asset G Asset H

2016 10% 11% 8%

2017 11 10 9

2018 12 9 10

2019 13 8 11

Using the assets you have isolated and the 3 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 alternatives.

b. Calculate the standard deviation of returns over the four year period for each of the alternatives.

c. Use your findings in parts a and b to calculate the coefficient of variation for each of the 3 alternatives.

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

Reference no: EM13976309

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