Expected Return Year Asset A Asset B Asset C 2021 6% 9% 3% 2022 8%...

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Expected Return Year Asset A Asset B Asset C 2021 6% 9% 3% 2022 8% 7% 5% 2023 10% 5% 7% 2024 12% 3% 9%

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

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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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