Mike is searching for a stock to include in his current stock portfolio. He is interested inHi-Tech Inc.; he has been impressed with thecompany's computer products and believesHi-Tech is an innovative market player. However, Mike realizes that any time you consider a technologystock, risk is a major concern. The rule he follows is to include only securities with a coefficient of variation of returns below 0.99

Mike has obtained the following price information for the period 2015 through 2018

2015 $14.44 $22.96

2016 $22.96 $64.96

2017 $64.96 $71.94

2018 $71.94 $91.67

. Hi-Tech stock, beinggrowth-oriented, did not pay any dividends during these 4 years.

a.Calculate the rate of return for eachyear, 2015

b.Assume that eachyear'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 asample.)

d.Based on b and c determine the coefficient of variation of returns for the security.

e.Given the calculation in d what should beMike's decision regarding the inclusion ofHi-Tech stock in hisportfolio?