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Rate of return, standard deviation, coefficient of variation Personal Finance Problem Mike is searching for a stock to include in his current stock portfolio Hois

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Rate of return, standard deviation, coefficient of variation Personal Finance Problem Mike is searching for a stock to include in his current stock portfolio Hois 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 arvy time you consider a technology stock nsk is a major concern The rule he follows is to include only securities with a coefficient of variation of returns below 112 Mike has obtained the following price information for the period 2015 through 2018 Hi Tech stock being growth-oriented, did not pay any dividonds during these 4 years 2. Calculate the rate of return for gach year, 2015 through 2018, for Hi-Tech Stock b. Assume that each year's return is equally probable and calculate the average roturn 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 band 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-Toch stock in his portfolio? 10 1 of 0 of Dof 1 a. The rate of return for year 2015 is % (Round to two decimal places) The rate of return for year 2016 is (Round to two decimal places) The role of Veturn for you 2017 18 % (Round to two decimal places) The rate of return for year 2018 is % (Round to two decimal places) b. The average return over this time period is (Round to two decimal places c. The standard deviation of returns over the past 4 years I (Round to two decimal places) a. The coolichant of vartion of rotum for Hi Tech stocks (Round to wo decimal places) . Given the calculation ind What should be Mko's decision regarding the inclusion of Hi-Tech stock in his portfolio? (Select the best answer below) Mke will include Hi Tech stock in his portfolio because the coolicient of variation of the secunty is below I 12 O man will not include Hi Tech ulock in his portfolio because the condiciont of variation of the security is not below 1.12 Artem of Year 2015 2016 2017 2018 Stock price Beginning $14.62 $20.83 $63.01 $72.65 End $20.83 $63.01 $72.65 $90.21

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