You have been given the following return? data,

Expected Return

Year Asset F Asset G Asset H

2018 18% 19% 16%

2019 19% 18% 17%

2020 20% 17% 18%

2021 21% 16% 19%

on three assets -F, G, and H—overthe period 2018–2021.

Using these assets, you have isolated three investment alternatives:

Alternative Investment

1 100% of asset F

2 55% of asset F and 45% of asset G

3 55% of asset F and 45% of asset H

a. Calculate the portfolio 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. On the basis of your findings in parts a and

b. which of the three investment alternatives would you recommend Why?