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Business, 25.03.2021 20:40 sammy16940

You have been given the following return​ data, three assets​A,​B, and C over the period 2021-2024 Expected Return
Year Asset A Asset B Asset C
2021 8% 11% 5%
2022 10% 9% 7%
2023 12% 7% 9%
2024 14% 5% 11%

Using these​ assets, you have isolated three investment​alternatives:

Alternative Investment
1 100% of asset A
2 45% of asset A and 55% of asset B
3 45% of asset A and 55% of asset C

a. Calculate the average portfolio return for each of the three alternatives.
b. Calculate the standard deviation of returns 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?

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