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Homework: Chapter 08 Homework Question 2, P8-9 (similar to) Part 1 of 3 HW Score: 0%, 0 of 10 points O Points: 0 of 1 Save Rate of return, standard deviation coefficient of variation Personal Finance Problem Mike in searching for a stock to include in his current stock portfolio He is intensted in 16-Tos Ina, ha has been impressed with the company's computer products and believes Hi-Tech is an innovative market player. However Mike wins that any time you consider a tecnology stock risk is a major concern. The rule he follows is to include only securities with a conflicent of variation of retums below 115 Mike has obtained the following price information for the period 2015 through 2018 Hi-Tech stock, being growth-oriented, did not pay any vidends during these years a. Calculate the rate of return for each year, 2015 through 2018 for Hi-Tech stock. b. Assume that each year's return is equally probable and calculate the average retum over this time period c. Calculate the standard deviation of returns over the past 4 years (Hint Treat this data as a sample) d. Based on bande determine the coefficient of variation of returns for the security e. Given the calculation in d what should be Mike's decision regarding the inclusion of Hi-Tech stock in his portfolio G a. The rate of retum for year 2015 - (Round to two decimal places) eturn, standard deviation, coefficient of variation Personal Finance Problem Mike is searching for a stack to include in his current stock portfolio He is inte as been impressed with the company's computer products and believes H. Toch is an innovative markalaver. However Mikecanices that any time you consi is a major concern. The rule h obtained the following price info - X vidends during these 4 Data table mte the rate of return for each ye e that each year's return is equ ate the standard deviation of ret (Click on the icon here in order to copy the contents of the data table below on band c determine the coeff into a spreadsheet.) the calculation in d what should Stock price Year Beginning End 2015 $14.79 $20 98 2016 $20.98 $64.31 ale of return for year 2015 is 2017 $64.31 $72.27 2018 $72.27 590 17 Print Done Far all cl me solve this View ar Rate of return, standard deviation, coefficient of variation Personal Finance Problem Mike is searching for a stock to include inh Inc, he has been impressed with the company's computer products and believes Hi-Tech is an innovative market player. However, ML stock, risk is a major concern. The rule he follows is to include only securities with a coefficient of variation of retums below 1 15 Mike has obtained the following price information for the period 2015 through 2018 Hi-Tech stock, being growth-oriented, did not a. Calculate the rate of return for each year 2015 through 2018, for Hi-Tech stock b. Assume that each year's return is equally probable and calculate the average return over this time period. c. Calculate the standard deviation of returns over the past 4 years Hint Treat this data as a sample) d. Based on band c determine the coeficient of anton of returns for the security e. Given the calculation in d what should be Mike's decision regarding the inclusion of Hi-Tech stock in his portfolio? a. The rate of return for year 2015 - 1% (Round to two decimal places) lo me solve this View an example Get more help

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