A,B,C,D,E. Thank you!
better picture for part A.
I just added all new pictures. this was the best i can get. Thank you!
(Song rehensive romthedo pe window to wholewing for the welcome Competens of return och med from Cebhed the goals frumore your own Come avere un peringatire pred you may pay any vided) ding tinerum ed in parte style ofrece -Year Rate of J-C Anu Rae Reum How the war of returned into the one of us when you wengine retum trechyear in the bound was before what were frumgerhout you? Why? Vale of Amate Amate Pe stock 120 23 10 31 20 En forechy or when the Round) T Hanis Stock Vio Pweck 11 of Retu 2 0 2 - 25.00% 05. 3000 30 31 Chelody b. The arithmetic average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is %, (Round to two decimal places.) The geometrio average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The geometrio average rate of return earned by investing in Pinwheel stook over this period is % (Round to two decimal places.) o. The three-year rate of return spanning the entire period for Harris is % (Round to two decimal places) The three-year rate of return spanning the entire period for Pinwheel is % (Round to two decimal places) d. The annual rate of return converted from the three-year rate in partc for Harnis is % (Round to two decimal places.) The annual rate of return converted from the three-year rate in parto for Pinwheel is % (Round to two decimal places) (Hound to two decimal places.) e. How is the annual rate of return calculated in part delated to the geometrie rate of return? (Select the best choice below) O A The annual rate of return calculated in part d is nothing but the geometrie average rate of return calculated in a different way OB. The annual rate of return calculated in part d is not related to the geometrie average rate of return OC The annual rate of return calculated in part d is nothing but the arithmetic average rate of retum calculated in a different way. D. The annual rate of return calculated in part is the same as the geometriose of return in this problem but this is only a coincidence When you are evaluating the performance of an investment that has been held for several years, what type of average rate of retum (arithmetio or geometric) should you use? Why? (Select the belt choice below) OA Ambie average return better describes the average anual rate of return over a period because is a simple were so it answers the Gestion concerning the expected rate of rum over a period OB. The athmetio rate of return should be used it better describes the average annual rate of return over a period because it compounds at the same rate while the geometrie rate of return is best used for a single period OC. The geometric rate of return should be used it better describes the verge annual rate of return over a period because it compounds at the same rate while the arthmeti rate of return is best used for ungle period D. Geometrie average return better describes the average annual rate of return over a period because a simple average soit as the questo concerning the expected rate of return over a period Click to select your answers PLITU a. Enter the annual rate of return for each year for Harris in the table below. (Round to two decimal places.) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock $8 6 Value of Pinwheel Stock $21 33 1 2 % 3 10 31 96 96 4 13 23 Enter the annual rate of return for each year for Pinwheel in the table below. (Round to two decimal places) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock S8 6 1 2 3 Value of Pinwheel Stock $21 33 31 96 10 - 25.00% 66.67 96 30.00% 96 4 96 13 23 Click to select your answer(s) (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window. im to answer the following questions for the Harris and Pinwheel companies. a. Compute the annual rates of return for each time period and for both firms b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from parta (Note: you may assume that nether firm pays any dividends) c. Compute a three-year rate of return spanning the entire periode, using the ending price for period 1 and ending price for period 4 d. Since the rate of retum calculated in partc is a three-year rate of return, convert it to an annual rate of return by using the following equation: Three-Year Annual Rate Rate of Retum of Return e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are evaluating the performance of an investment that has been held for several years, what type of average you use? Why 1 + J.-C. a. Enter the annual rate of return for each year for Harris in the table below. (Round to two decimal places.) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock $8 6 Value of Pinwheel Stock $21 33 1 2 9 3 10 31 96 96 13 23 Enter the annual rate of return for each year for Pinwheel in the table below. (Round to two decimal places.) Time Value of Harris Stock $8 Annual Rate of Return Annual Rate of Return Value of Pinwheel Stock $21 33 1 2 3 10 - 25.009 66.67% 30.0096 31 14 13 23 Click to select your answers b. The arithmetic average rate of return earned by investing in Harris stook over this period is %. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is % (Round to two decimal places.) The geometric average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places) The geometric average rate of return earned by investing in Pinwheel stock over this period is % (Round to two decimal places) c. The three-year rate of return spanning the entire period for Harris is 1. %. (Round to two decimal places.) The three-year rate of return spanning the entire period for Pinwheel is % (Round to two decimal places.) eu pedid Pinwheels. (Round to two decimal places.) d. The annual rate of return converted from the three-year rate in partc for Harris is %. (Round to two decimal places.) The annual rate of return converted from the three-year rate in partc for Pinwheel is %. (Round to two decimal places.) (Round to two decimal places) e. How is the annual rate of retum calculated in part related to the geometrie rate of return? (Select the best choice below) OA The annual rate of return calculated in part disrothing but the geometric average rate of return calculated in a different way OB. The annual rate of return calculated in part d is not related to the geometric average rate of retum OC The annual rate of return calculated in part is nothing but the arithmetic average rate of return calculated in a different way D. The annual rate of return calculated in part is the same as the geometric rate of return in this problem but this is only a coincidence When you are evaluong the performance of an investment that has been held for several years, what type of average rate of return (arthmetic or geometrie) should you use? Why? (Select the best choice below) O A Arthmetic average return better describes the average annual rate of return over a period because it is a simple were so it wwer the question concerning the expected rate of retur over a period OB The anthimet e of return should be used it better descebes the average annual rase of retum over a period because compounds the same rate white geometne rate of retum is best used for a single period OC. The geometric rate of return should be used it better describes the average annual rate of retum over a period because it compounds the same rate while the arithmetic rate of retum is best used for a single period Dometric average return better serves the average rate of return over a period because it is a simple average so answer the question concerning the expected rate of return over a period Click to select your answers) (Song rehensive romthedo pe window to wholewing for the welcome Competens of return och med from Cebhed the goals frumore your own Come avere un peringatire pred you may pay any vided) ding tinerum ed in parte style ofrece -Year Rate of J-C Anu Rae Reum How the war of returned into the one of us when you wengine retum trechyear in the bound was before what were frumgerhout you? Why? Vale of Amate Amate Pe stock 120 23 10 31 20 En forechy or when the Round) T Hanis Stock Vio Pweck 11 of Retu 2 0 2 - 25.00% 05. 3000 30 31 Chelody b. The arithmetic average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is %, (Round to two decimal places.) The geometrio average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The geometrio average rate of return earned by investing in Pinwheel stook over this period is % (Round to two decimal places.) o. The three-year rate of return spanning the entire period for Harris is % (Round to two decimal places) The three-year rate of return spanning the entire period for Pinwheel is % (Round to two decimal places) d. The annual rate of return converted from the three-year rate in partc for Harnis is % (Round to two decimal places.) The annual rate of return converted from the three-year rate in parto for Pinwheel is % (Round to two decimal places) (Hound to two decimal places.) e. How is the annual rate of return calculated in part delated to the geometrie rate of return? (Select the best choice below) O A The annual rate of return calculated in part d is nothing but the geometrie average rate of return calculated in a different way OB. The annual rate of return calculated in part d is not related to the geometrie average rate of return OC The annual rate of return calculated in part d is nothing but the arithmetic average rate of retum calculated in a different way. D. The annual rate of return calculated in part is the same as the geometriose of return in this problem but this is only a coincidence When you are evaluating the performance of an investment that has been held for several years, what type of average rate of retum (arithmetio or geometric) should you use? Why? (Select the belt choice below) OA Ambie average return better describes the average anual rate of return over a period because is a simple were so it answers the Gestion concerning the expected rate of rum over a period OB. The athmetio rate of return should be used it better describes the average annual rate of return over a period because it compounds at the same rate while the geometrie rate of return is best used for a single period OC. The geometric rate of return should be used it better describes the verge annual rate of return over a period because it compounds at the same rate while the arthmeti rate of return is best used for ungle period D. Geometrie average return better describes the average annual rate of return over a period because a simple average soit as the questo concerning the expected rate of return over a period Click to select your answers PLITU a. Enter the annual rate of return for each year for Harris in the table below. (Round to two decimal places.) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock $8 6 Value of Pinwheel Stock $21 33 1 2 % 3 10 31 96 96 4 13 23 Enter the annual rate of return for each year for Pinwheel in the table below. (Round to two decimal places) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock S8 6 1 2 3 Value of Pinwheel Stock $21 33 31 96 10 - 25.00% 66.67 96 30.00% 96 4 96 13 23 Click to select your answer(s) (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window. im to answer the following questions for the Harris and Pinwheel companies. a. Compute the annual rates of return for each time period and for both firms b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from parta (Note: you may assume that nether firm pays any dividends) c. Compute a three-year rate of return spanning the entire periode, using the ending price for period 1 and ending price for period 4 d. Since the rate of retum calculated in partc is a three-year rate of return, convert it to an annual rate of return by using the following equation: Three-Year Annual Rate Rate of Retum of Return e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are evaluating the performance of an investment that has been held for several years, what type of average you use? Why 1 + J.-C. a. Enter the annual rate of return for each year for Harris in the table below. (Round to two decimal places.) Time Annual Rate of Return Annual Rate of Return Value of Harris Stock $8 6 Value of Pinwheel Stock $21 33 1 2 9 3 10 31 96 96 13 23 Enter the annual rate of return for each year for Pinwheel in the table below. (Round to two decimal places.) Time Value of Harris Stock $8 Annual Rate of Return Annual Rate of Return Value of Pinwheel Stock $21 33 1 2 3 10 - 25.009 66.67% 30.0096 31 14 13 23 Click to select your answers b. The arithmetic average rate of return earned by investing in Harris stook over this period is %. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is % (Round to two decimal places.) The geometric average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places) The geometric average rate of return earned by investing in Pinwheel stock over this period is % (Round to two decimal places) c. The three-year rate of return spanning the entire period for Harris is 1. %. (Round to two decimal places.) The three-year rate of return spanning the entire period for Pinwheel is % (Round to two decimal places.) eu pedid Pinwheels. (Round to two decimal places.) d. The annual rate of return converted from the three-year rate in partc for Harris is %. (Round to two decimal places.) The annual rate of return converted from the three-year rate in partc for Pinwheel is %. (Round to two decimal places.) (Round to two decimal places) e. How is the annual rate of retum calculated in part related to the geometrie rate of return? (Select the best choice below) OA The annual rate of return calculated in part disrothing but the geometric average rate of return calculated in a different way OB. The annual rate of return calculated in part d is not related to the geometric average rate of retum OC The annual rate of return calculated in part is nothing but the arithmetic average rate of return calculated in a different way D. The annual rate of return calculated in part is the same as the geometric rate of return in this problem but this is only a coincidence When you are evaluong the performance of an investment that has been held for several years, what type of average rate of return (arthmetic or geometrie) should you use? Why? (Select the best choice below) O A Arthmetic average return better describes the average annual rate of return over a period because it is a simple were so it wwer the question concerning the expected rate of retur over a period OB The anthimet e of return should be used it better descebes the average annual rase of retum over a period because compounds the same rate white geometne rate of retum is best used for a single period OC. The geometric rate of return should be used it better describes the average annual rate of retum over a period because it compounds the same rate while the arithmetic rate of retum is best used for a single period Dometric average return better serves the average rate of return over a period because it is a simple average so answer the question concerning the expected rate of return over a period Click to select your answers)
