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Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and B. Consider the data in table below, which show

Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and B. Consider the data in table below, which show the movements in price for two stocks over two successive holding periods. Both stocks have a beginning price of $10. Stock A rises to $70 in period 1 and then further increased to $80 in period 2. Stock B increased to $80 in period1 and then decreased to $50 in period 2. Stock Period 1 A $70 B $80 Period 2 Annual Arithmetic Rate of Return Annual Geometric Rate of Return $80 $50

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