Question

The following information indicates percentage returns for stocks L and M over a 6-year period:

Year	Stock L Returns	Stock M Returns
1	14.73%	20.2%
2	14.59%	18.41%
3	16.58%	16.28%
4	17.69%	14.15%
5	17.5%	12.41%
6	19.78%	10.68%

In combining [L−M] in a single portfolio, stock M would receive 60% of capital funds.

Furthermore, the information below reflects percentage returns for assets F, G, and H over a 4-year period, with asset F being the base instrument:

Year	Asset F Returns	Asset G Returns	Asset H Returns
1	16.27%	17.08%	14.31%
2	17.24%	16.14%	15.24%
3	18.17%	15.01%	16.22%
4	19.04%	14.4%	17.3%

Using these assets, you have a choice of either combining [F−G] or [F−H] in a single portfolio, on an equally-weighted basis.

Required: Calculate the absolute percentage difference in the coefficient of variation (CV) between the stock portfolio [L−M] and the portfolio which outlines the optimal combination of assets.

Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).

Answer 1