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help please (Solving a comprehensive problem) Use the ond-of-year stock price data in the popup window. to answer the following questions for the Harris and
help please
(Solving a comprehensive problem) Use the ond-of-year stock price data in the popup window. 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 retum for the entire three-year penod using your annual rates of retum from part a (Note you may assume that nether lirm pays any dividends) c. Compute a three-year rate of return spanning the entire period (i e, using the ending price for poriod 1 and ending price for period 4 ). d. Since the rate of return calculated in part c is a three-year rate of return, corvert it to an annual rate of return by using the following oquation: e. How is the annual rate of return calculated in part d related to the geometric rate of return? Whon you are evaluating the performance of an investment that has been held for several years, what type of average rate of return (arthmetic or geometric) should you use? Why? Enter the annual rate of return for each year for Harns in the table below. (Round to two decimal places) Step by Step Solution
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