$($Solving a comprehensive problem$)$ Use the end$-$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. any dividends.$)$

c$.$ Compute a three$-$year rate of return spanning the entire period $($i$.$e$.,$ using the ending price for period $1$ and ending price for period $4).$

d$.$ Since the rate of return calculated in part $c$ is a three$-$year rate of return, convert it to an annual rate of return by using the following equation: tvpe of averace rate of return $($arithmetic or aeometric$)$ should vou use? Whv$?$

$($Solving a comprehensive problem$)$ Use the end$-$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 return for the entire three$-$year period using your annual rates of return from part a$.($Note: you may assume that neither firm pays any dividends.$)$

c$.$ Compute a three$-$year rate of return spanning the entire period $($i$.$e$.,$ using the ending price for period $1$ and ending price for period $4).$

d$.$ Since the rate of return calculated in part $c$ is a three$-$year rate of return, convert it to an annual rate of return by using the following equation:

e$.$ How is the annual rate of return calculated in part $d$ related to the geometric rate of return? When you are evaluating the performance of an investment that has been held for several years, what type of average rate of return $($arithmetic or geometric$)$ should you use? Why?

The annual rate of return converted

e$.$ How is the annual rate of return $c$

A$.$ The annual rate of return cal

B$.$ The annual rate of return cal

C$.$ The annual rate of return cal

D$.$ The annual rate of return cal

When you are evaluating the perforr choice below.$)$

A$.$ The arithmetic rate of return best used for a single period

B$.$ Arithmetic average return be over a period.

c$.$ Geometric average return better 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 period.

D$.$ The geometric rate of return should be used. It better describes the average annual rate of return over a period because it compounds at the same rate while the arithmetic rate of return is best used for a single period.

Data table

$\backslash$table$[[$Time$,$Harris,Pinwheel$],[1,$$$10,$$$21$