Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do Hamewark Owen Lockamon Google Chrame Secure https://www.mathxl.com/Student/PlayerHomework.aspx2homeworkld 4651667 d-28flushed-falsecld 4844018centerwin-yes FIN 315-04D: Business Finance I (SP18) Owen Lockamon3/28/18 8:40 PM Homework: HW Ch8 Score:

image text in transcribed

Do Hamewark Owen Lockamon Google Chrame Secure https://www.mathxl.com/Student/PlayerHomework.aspx2homeworkld 4651667 d-28flushed-falsecld 4844018centerwin-yes FIN 315-04D: Business Finance I (SP18) Owen Lockamon3/28/18 8:40 PM Homework: HW Ch8 Score: 0 of 10 pts P8-9 (similar to) Save 4 of 13 (3 complete) HW Score: 21.79%, 28.33 of 130 pts Question Help ate a re urn standard devat on, coe lic en o vanati n Personal Finance Problem M e searching or a s o a include r? h??s current stock portfo ?n He is nterested in Hi ech Inc he has been rn ressed with he campan s omputer products and bel eves Hi-Tach is an innovative markat player Howaver, Mike raaizas that any time you consider a tachnology stock, risk is a major concem. The rula ha fallows is to include only securities with a coefficient of variation of retums below 1.04 Mike has a taned the folowing pnco n ormation for thc perind 2012 rough 2015 Hi Tech s ock beng growth nnrited, did not pay any d lends du?g th se4 yBars a. Calculate the rate of retum for each year, 2012 through 2015, for Hi-Tach stock. b. Assume that each yeer's retum is equally probable and calculate the aversge retum over this time period. c. Calculate the standard devstian of returns over the past 4 years. (Hi. Treat this data as a sample.) d. Basad on b and c dstermine the ccefcient af variatian of returns for the seaurity e. Given tha calculation in d what should be Mike's decision regarding tha inclusion of Hi-Tech stock in his portfolio? a. The rate of return for year 2012 is L1%. (Round to two decimal places.) Data Table Click an the icon located on the tap-right corner of he data lable below in arder to copy its contents into a spreadsheet) Stock price Year 2012 2013 2014 2015 $14.84 $22.06 53.61 $71.75 End $22 D6 63.61 S71.75 9199 Print Done Enter your answer in the answer box and then click Check Answer Clear All Check Answer O Type here to search 540 PM 3/28/2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioral Finance The Coming Of Age

Authors: Itzhak Venezia

1st Edition

9813279451,9813279478

More Books

Students also viewed these Finance questions

Question

When are extra allowances provided?

Answered: 1 week ago

Question

Explain how rhetoric and culture are interrelated

Answered: 1 week ago

Question

Consider this article:...

Answered: 1 week ago