Share
Explore BrainMass

Investment alternatives

See the attached file.

Given the return data on three countries over a period of 2007-2010, calculate the expected return over the 4 year period. Calculate the standard deviation of returns over the 4 year period for each of the three alternatives. Use your finding in part a and b to calculate the coefficient of variation for each of the three alternatives.

On the basis of your findings, which of the three investment alternatives do you recommend? Why?

Attachments

Solution Preview

see attached file.

You have been given the return data shown in the first table on three countries?China, India, and South Korea?over the period 2007-2010.

Expected return
Year China India South Korea
2009 16% 17% 14%
2010 17% 16% 15%
2011 18% 15% 16%
2012 19% 14% 17%

Using these countries, you have isolated the three investment alternatives shown in the following table:

Alternative Investment
1 100% of China
2 50% of China and 50% or India
3 50% of ...

Solution Summary

This solution is comprised of a detailed explanation to answer which of the three investment alternatives do you recommend.

$2.19