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help please part a,b,c,d second part (Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the

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part a,b,c,d image text in transcribed
second part
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(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices ove the last five years and paid no cash dividends (Crick on the icon pe in orow ro copy as contenss who a spreadsheot) a. Calculate the annual rate of return for each year from the above information b. What is the anthmetic average rate of return earned by investing in Brangus. Cattle Compary's stack over this period? c. What is the geometric average rate of return earned by investing in Brangus Catte Company's stock over this period? d. Which type of average rate of return best describes the average annual rate of refurn earned over the penod (the arithmetc or peometric)? Why? a. The annual rate of return at the end of year 2 is 2. (Round to two decimal places) The annual rate of return at the end of year 3 is \%. (Round to two decimal places) The annual rate of retum at the end of year 4 is \% (Round to wo decimal places) The annual rate of return at the end of year 5 is % (Round to two decimal places.) b. The arithmetic average rate of return earned by investing in Brangus Calle Companys stock over thes period is \%. (Round to two decimal places.) c. The geometric average rate of return earned by investing in Brangus Cattle Company's stock over thes period is Q. (Round to fwo docimat ptacos) d. Which typo of averago rate of return best describes the average annuat tate of return earnod over tho poriod the anthmetic or goometric)? Why? (Select the best choice below) A. Anthmebc average return best describes the average annual rate of return over a period because it is a simplo averago, so it answers the question concerning the expected rate of return over a muli-year period B. Geometnc average retum best doscribes the average annual rate of return over a penod because it is a simple averago, so it answers the question conceming the expected rate of retum over a mult-year period C. Arthmetic average return best describes the avotage annual rate of return ower a period because it fakes compounding into account, so if answers the question concorning the expected rale of return over a multiyear penod D. Geometric average refum best describes the average annual rate of rotum over a penod because it takes compounding into account so it answers the queston concerning the expecled rate of roturn over a mult. year period

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