You are searching for a stock to add to your current portfolio. You are interested in? Blackhawks, Inc. ? but are focused on elevated risk. You only buy securities with a coefficient of variation of returns below 1.0. You have obtained the following price information and dividend information (10 points).round to nearest one decimal place:

Year Starting Price Ending price Quarterly Dividend

1 $54.00 $66.00 $0.375

2 $66.00 $70.60 $0.500 3 $70.60 $71.54 $1.000

a.Calculate the rate of return for each? year, 1 through 3

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 3 years.

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

e.Does an investment in this stock fall within the parameters of your investment policy?