$($Related to Checkpoint $7\mathrm{.}2$ on page $207)($Calculating the geometric and arithmetic

average rate of return$)$ Caswell Enterprises had the following end$-$of$-$year stock

prices over the last five years and paid no cash dividends:

a$.$ Calculate the annual rate returns for each year from this information.

b$.$ What is the arithmetic average rate of return earned by investing in Caswell's

stock over this period?

c$.$ What is the geometric average rate of return earned by investing in Caswell's

stock over this period?

d$.$ Considering that the beginning and ending stock prices for the five$-$year period

are the same, which type of average rate of return best describes the average

annual rate of return earned over the period $($the arithmetic or geometric$)?$