Portfolio analysis???You have been given the expected return data shown in the first table on three
assetslong dash—?F,?G, and H long dash—over the period? 20162019:
Expected Return 

Year 
Asset F 
Asset G 
Asset H 

2016 
15?% 
16?% 
??? 
13?% 
??? 

2017 
16?% 
15?% 
14?% 

2018 
17?% 
14?% 
15?% 

2019 
18?% 
13?% 
16?% 
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? 4year period for each of the three alternatives.
b.??Calculate the standard deviation of returns over the? 4year 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?
Year 
Asset F 
G 
H 

2016 
15 
16 
13 

2017 
16 
15 
14 

2018 
17 
14 
15 

2019 
18 
13 
16 

Average return = using average function in MS excel 
16.5 
14.5 
14.5 

standard deviation= using stdevp function in ms excel 
1.118034 
1.118034 
1.118034 

coefficient of variance = standard deviation/mean 
6.78% 
7.71% 
7.71% 

return 
risk 

Investment 1 
16.50% 
6.78% 

Investment 2 
(.5*.165)+(.5*.145) 
15.5% 
(.5*.678)+(.5*.771%) 
34% 
Investment 3 
(.5*.165)+(.5*.145) 
15.5% 
(.5*.678)+(.5*.771%) 
34% 
Investment in alternative 1 is better as return is high and risk is low 
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