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calculating geometric and arthimetic average rate of return? 8 (Related to Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh inc. had
calculating geometric and arthimetic average rate of return? 8
(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 (Wick on the scon b in order to copy its contents into at spreadsheet) a. Calculate the annual fate of retum for each year from the above information. b. What is the arithmetic avorage rate of return earned by investing in Marsh's stock over this period? c. What is the geometric average rate of retum eamed by imesting in Marsh's stock over this period? a. The annual rate of retum at the end of year 2 is \%. (Round to two decimal places.) a. Ceiculate the annual nate of ratim far each year fons the deove information. b. What is the aithmetic avetage rate of retum earned by imvesting in Marsh's stock ower this pariad? 5. What is the geomethe werage iate of retutn asmed fy inwesting in Marth 's stock over this peniod? a. The mruad the of retum at the end of your 2 if 4. (Round to tho detimsl pisces.) (1) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stey in Protected View. Enable Editing \begin{tabular}{|l|l|l|} \hline A1 & \multicolumn{1}{|c|}{} \\ \hline 4 & A & \multicolumn{2}{|c|}{ B } \\ \hline 1 & Time & Marsh \\ \hline 2 & 1 & $10 \\ \hline 3 & 2 & $13 \\ \hline 4 & 3 & $16 \\ \hline 5 & 4 & $7 \\ \hline 6 & 5 & $10 \\ \hline 7 & & \\ \hline \end{tabular} Step by Step Solution
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