Homework: Ch 8 Pre HW Save 4 of 6 (0 complete) HW Score: 0%, 0 of 6 pts Score: 0 of 1 pt P8-9 (similar to) Question Help 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, risk is a major concern. The rule he follows is to include only securities with a coefficient of variation of returns below 1.11. 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 returns over the past 4 years. (Hint: Treat this data as a sample) d. Based on b and c 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 2015 is % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer 7 Check Answer Clear All parts remaining low 111 not pay any dividends during these 4 years. Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2015 2016 2017 2018 Stock price Beginning $14.95 $21.45 $63.89 $71.49 D End $21.45 $63.89 $71.49 $91.05 Print Done Clear All