Calculate the standard deviation of returns

Assignment Help Financial Management

Reference no: EM132003657

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

F G H

2016 15% 16% 13%

2017 16% 15% 14%

2018 17% 14% 15%

2019 18% 13% 16%

Alternative: 1. 100%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 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: EM132003657

Questions Cloud

Summarise the characteristics of the sample : HSE104 - Research Methods and Statistics in Exercise and Sport - Previous research has also indicated that coaches from larger community sports organisations

How many additional pylons must you construct : Pylons benefit society according to the benefit function: B = 1.7q3-7.3q+c. As a welfare maximiser, you will build the number of pylons which benefit society

Resembles monopolistic competition : The automobile market most closely resembles monopolistic competition. (a) Do you believe the market power of automobile companies will increase

How does your nursing experience influence the advocacy : Was your member in support or in opposition to the AHCA? How does your nursing experience influence the advocacy position that you take on the AHCA?

Calculate the standard deviation of returns : Calculate the standard deviation of returns over the? 4-year period for each of the three alternatives.

What is the production effect of a tariff : What is the production effect of a tariff? How would you describe it in words, without reference to any diagram or numbers?

Provide a concise statement of the problem confronting : Explain why this alternative is better than the others. What problem did your solution solve that the others didn't?

Consumption possibility frontier for countries : Suppose that the relative price of computers in terms of automobiles after trade is 3 automobiles per unit of computers.

Federal government for unemployment insurance benefit : Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.

User Account

All Pages