Question

 Mike is searching for a stock to include in his current stock portfolio. He is 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 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

1.06.

Mike has obtained the following price information for the period 2012 through​ 2015

	Stock price
Year		Beginning		End
2012		​$14.42		​$22.01
2013		​$22.01		​$64.97
2014		​$64.97		​$71.21
2015		​$71.21		​$90.98

Hi-Tech stock, being​ growth-oriented, did not pay any dividends during these 4 years.

 Calculate the rate of return for each​ year, 2012 through​ 2015, for​ Hi-Tech stock

Answer 1

Answer:

Rates of return for each​ year, 2012 through​ 2015, are calculated and given below: