Mike is searching for a stock to include in his current stock portfolio. He is interested in
Question:
Mike has obtained the following price information for the period 2009 through 2012. Hi-Tech stock, being growth-oriented, did not pay any dividends during these 4 years.
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a. Calculate the rate of return for each year, 2009 through 2012, for Hi-Tech 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.
d. Based on b and 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-Tech stock in hisportfolio?
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a Stock Price Variance Year Beginning End Returns ReturnAverage Return 2 2009 2010 ...View the full answer
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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
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Related Book For 
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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