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 Dell Technologies Inc.; he has

been impressed with the company's computer products and believes Dell 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 $1\mathrm{.}13.$

Mike has obtained the following price information for Dell stock $.$ Dell has not paid any dividends during these $4$ years.

a$.$ Calculate the rate of return for each year, $2017$ through $2020,$ for Dell 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 for the security.

e$.$ Given the calculation in $d$ what should be Mike's decision regarding the inclusion of Dell stock in his portfolio?

a$.$ The rate of return for year $2017$ is $\%.($Round to two decimal places.$)$

Data table

$($Click on the icon here in order to copy the contents of the data table below

into a spreadsheet.$)$