Question
Carlos 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
Carlos 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 Hi-Tech is an innovative market player. However, Carlos 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 1.04. Carlos 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.
STOCK PRICE
YEAR | BEGINNING | END |
2015 | $14.63 | $21.98 |
2016 | $21.98 | $63.43 |
2017 | $63.43 | $72.24 |
2018 | $72.24 | $90.76 |
What is the rate of return for year 2015? (Round to two decimal places, and do not include '%' sign in your response).
What is the rate of return for year 2016? (Round to two decimal places, and do not include '%' sign in your response).
What is the rate of return for year 2017? (Round to two decimal places, and do not include '%' sign in your response).
What is the rate of return for year 2018? (Round to two decimal places, and do not include '%' sign in your response).
What is the average return over this time period? (Round to two decimal places, and do not include '%' sign in your response).
What is the standard deviation of returns over these 4 years? (Round to two decimal places, and do not include '%' sign in your response).
What is the coefficient of variation of returns for Hi-Tech stock? (Round to two decimal places, and do not include '%' sign in your response).
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