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homework help! (Click on the icon D in order fo copy its contents into a spreadsheet.) a. Calculate the annual rate of return for each
homework help!
(Click on the icon D in order fo copy its contents into a spreadsheet.) a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic averag rate of return earned by investing in Brangus Cattle Company's stock over this period? c. What is the geometric average rate of return earned by investing in Brangus Cattle Cmpany's stock over this period? d. Which type of average rate of return best describes the average annual rate of retum earned over the period (the arithmetic or geometric)? Why? d. Which type of average rate of return best describes the average annual rate of return earned over the penod (the arithmetic or geometric)? Why? (Select the best choice below.) A. Arithmetic average retum best describes the average annual rate of return cyer a period because it takes compounding into account, so it answers the question concerning the expected rate of return over a multi-year period. B. Geometric average return best describes the average annual rate of return over a period because it is a simple average, so it answers the question concerning the expected rate of return over a multi-year period. C. Arithmetic average return best describes the average annual rate of return over a period because it is a simple average, so it answers the question concerning the expected rate of return over a multi-year period. D. Geometric average return best describes the average annual rate of return over a period because it takes compounding into account, so it answers the question concerning the expected rate of return over a multi-year period Step by Step Solution
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