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A) Annual Rates of Return for Each Year: Year 1, Year 2, Year 3, Year 4, and Year 5. B) Arithmetic Average Rate of Return:
A) Annual Rates of Return for Each Year: Year 1, Year 2, Year 3, Year 4, and Year 5.
B) Arithmetic Average Rate of Return:
C) Geometric Average Rate of Return:
D) Arithmetic Return of Geometric Return:
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(Related to Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Marsh 1 $10 2 10 3 4 6 5 10 (Click on the icon in order to copy its contents into a spreadsheet.) 18 a. The annual rate of return at the end of year 2 is %. (Round to two decimal places.)
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