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7. (12 points) Suppose that you bought a stock 6 years ago at $12.The stock's price at the end of each year is shown here.

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7. (12 points) Suppose that you bought a stock 6 years ago at $12.The stock's price at the end of each year is shown here. Y ear1 Price 15 2 4 14 252016 a. Compute the rate of return for each year. b. Compute the average and median rate of return. c. Compute the compound rate of return. Page |2 d. Which of the statistics computed in parts (b) and (c) best describe the return over the 6-year period? Show mathematically and explain

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