Facebook's stock price in 2013 increased by 105.3%, and in 2014, it increased by 42.8%. (Data extracted from finance.yahoo.com, May 5, 2015.)
a. Compute the geometric mean rate of return per year for the two-year period 2013-2014.
b. If you purchased $1,000 of Facebook stock at the start of 2013, what was its value at the end of 2014?
c. Compare the result of (b) to that of Problem 3.19 (b).