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?