QUESTION FOUR

Anne is searching for shares to include in her current share portfolio. She is interested in Charter Ltd shares; she has been impressed with the company's computer products and believes it is an innovative market player. However, Anne realises that any time you consider a so-called Charter share, risk is a major concern. The rule she follows is to include only securities with a coefficient of variation of returns below 0.90.

Anne has obtained the following price information for the period from 2016 to 2019. Charter Ltd, being growth-oriented, did not pay any dividends during these four years.