Portfolio anahysis You have been given the historical return data shown in the f
ID: 2810853 • Letter: P
Question
Portfolio anahysis You have been given the historical return data shown in the first table on three assets-F G, and H-over the period 2016-2019. P8-14 Historical return Asset G Asset h Year 2016 2017 2018 2019 Asset F 16% 17 18 19 17% 16 15 14 14% 15 16 17 Using these assets, you have isolated the three investment alternatives shown in the following table. Investment 100% of asset F 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H Alternative a. Calculate the average 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 c. Use your findings in parts a and b to calculate the coefficient of variation d. On the basis of your findings, which of the three investnent alternatives of the three alternatives. for each of the three alternatives. do you think performed better over this period? Why?Explanation / Answer
use stdev.s funciton in Excel to determine standard dev
Coefficient of variation = std dev/average return
Alternate B is the best since it has the lowest coeff of variation
F F and G F and H 1 16.00% 16.50% 15.00% 2 17.00% 16.50% 16.00% 3 18.00% 16.50% 17.00% 4 19.00% 16.50% 18.00% Average 17.50% 16.50% 16.50% std dev 1.29% 0.00% 1.29% coeff of Var 0.07 0.00 0.08