A treasury manager is assessing the annual performance of the firm's short-term investment portfolio. The beginning value of the portfolio was $5,200,000. At year-end, the portfolio was valued at $5,350,000. No investments were purchased over the year as revenues and cash flows dropped, which made it difficult to accumulate additional cash holdings.

a)What is the annual rate of return on the short-term investment portfolio?

b)What would the annual rate of return be if the ending value equaled $5,100,000?