=+LG 1 LG 2 P89 Rate of return, standard deviation, and coefficient of variation Mike is searching

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=+LG 1 LG 2 P8–9 Rate of return, standard deviation, and coefficient of variation Mike is searching for a stock to include in his current stock portfolio. He is interested in Hi-Tech Inc.;

he has been impressed with the company’s computer products and believes that Hi-Tech is an innovative market player. However, Mike realizes that any time you consider a technology stock, risk is a major concern. The rule he follows is to include only securities with a coefficient of variation of returns below 0.90.

Mike has obtained the following price information for the period 2015 through 2018. Hi-Tech stock, being growth oriented, did not pay any dividends during these 4 years.

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Related Book For  book-img-for-question

Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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