Homework: Chapter 8. Risk and Return Question 6, P8-9 (book/static) Part 1 of 8 HW Score: 0%, 0 of 20 points O Points: 0 of 1 Save Next question 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 returns below 0.90. Mike has obtained the following price information for the period 2015 through 2018: B. 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 retum is equally probable and calculate the average retum 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? ce a. The rate of return for year 2015 is %. (Round to two decimal places.) "ces Data table Isto re ivic (Click on the icon here in order into a spreadsheet.) copy the contents of the data table below Year End Stock price Beginning $14.36 $21.55 $21.55 $64.78 2016 $64.78 $72.38 2018 $72.38 $91.80 Print Done