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Data Table X - x (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year

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Data Table X - x (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 2015 2016 2017 2018 Stock price Beginning $14.37 $21.96 $63.42 $71.24 End $21.96 $63.42 $71.24 $91.04 Rate of return, standard deviation, coefficient of variation Personal Finance Problem 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 Hi-Tech is an innovative market player. However, Mike realizes that any time you consider a technology stock, nisk is a major concern. The rule he follows is to include only securities with a coefficient of variation of retums below 1.02 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. 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 retums 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? a. The rate of return for year 2016 8 % (Round to two decimal places.) The rate of return for year 2016 is % (Round to two decimal places) The rate of return for year 2017 (% (Round to two decimal places.) The rate of return for year 2018 5 % (Round to two decimal places.) b. The average return over this time period in % (Round to two decimal places.) c. The standard deviation of return over the past 4 years is % (Round to two decimal places.) d. The content of variation of retums for Hi-Tech stock is (Round to two decimal places) o. Given the calculation in d what should be Mike's decision regarding the inclusion of Hi-Tech stock in his portfolio? (Select the best answer below.) Mike will not include Hi-Tech stock in his portfolio because the coefficient of variation of the security is not below 1.02 Mike will include Hi-Tech stock in his portfolio because the coolent of variation of the security in below 102

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