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:
Year Asset F Asset G Asset H
2016 14% 15% 12%
2017 15% 14% 13%
2018 16% 13% 14%
2019 17% 12% 15%
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. The expected return over the? 4-year period for alternative 1 is Blank 1. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal? place.) The expected return over the? 4-year period for alternative 2 is Blank 2. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal? place.) The expected return over the? 4-year period for alternative 3 is Blank 3. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal? place.) b. The standard deviation of returns over the? 4-year period for alternative 1 is Blank 4. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal?places.) The standard deviation of returns over the? 4-year period for alternative 2 is Blank 5. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal? places.) The standard deviation of returns over the? 4-year period for alternative 3 is Blank 6. Fill in the blank, read surrounding text. ?%. ?(Round to two decimal? places.) c. The coefficient of variation for alternative 1 is Blank 7. Fill in the blank, read surrounding text. . ?(Round to three decimal? places.) The coefficient of variation for alternative 2 is Blank 8. Fill in the blank, read surrounding text. . ?(Round to three decimal? places.) The coefficient of variation for alternative 3 is Blank 9. Fill in the blank, read surrounding text. . ?(Round to three decimal? places.) d. On the basis of your? findings, Alternative Blank 10. Fill in the blank, read surrounding text. is the best choice. |
