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Year 2019 2020 2021 2022 Alternative 2 3 Asset F 16% 17 18 19 Investment 100% of asset F Historical return Asset G 17% 16 15 14 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H Asset H 14% 15 16 17 a. Calculate the average return over the four-year period for each of the three alternatives. b. Calculate the standard deviation of returns over the four-year 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 think performed better over this period? Why?

Year 2019 2020 2021 2022 Alternative 2 3 Asset F 16% 17 18 19 Investment 100% of asset F Historical return Asset G 17% 16 15 14 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H Asset H 14% 15 16 17 a. Calculate the average return over the four-year period for each of the three alternatives. b. Calculate the standard deviation of returns over the four-year 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 think performed better over this period? Why?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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### Historical Returns Overview #### Data Table | Year | Asset F | Asset G | Asset H | |------|---------|---------|---------| | 2019 | 16% | 17% | 14% | | 2020 | 17% | 16% | 15% | | 2021 | 18% | 15% | 16% | | 2022 | 19% | 14% | 17% | #### Investment Alternatives | 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 | ### Analytical Tasks **a. Calculate the average return over the four-year period for each of the three alternatives.** **b. Calculate the standard deviation of returns over the four-year 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 think performed better over this period? Why?** *Please show work for me to understand and put in Excel sheet showing formulas.*
Transcribed Image Text:### Historical Returns Overview #### Data Table | Year | Asset F | Asset G | Asset H | |------|---------|---------|---------| | 2019 | 16% | 17% | 14% | | 2020 | 17% | 16% | 15% | | 2021 | 18% | 15% | 16% | | 2022 | 19% | 14% | 17% | #### Investment Alternatives | 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 | ### Analytical Tasks **a. Calculate the average return over the four-year period for each of the three alternatives.** **b. Calculate the standard deviation of returns over the four-year 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 think performed better over this period? Why?** *Please show work for me to understand and put in Excel sheet showing formulas.*
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