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# 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?

#### 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.

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