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(Solving a comprehensive problem) Use the end-ofyear stock price data in the popup window, a. Compute the annual rates of return for each time period

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(Solving a comprehensive problem) Use the end-ofyear stock price data in the popup window, a. Compute the annual rates of return for each time period and for both firms. b. Colculase both the aritimotic and the geometic mean nates of retum for the entere three-yoar period using your annual rates of teturn from part a. (Note. you may assume that neether frm pays any dividends.) c. Computa a three-year rate of retum spanning the ontire period ( 16 , using the onding pribs for period t and ending price for penced 4 ). d. Snce the rate of return calculated in part c is a three-year rate of retum, convert is to an annual tale of retum by using the following equation (Three-YearRateofRetum)=(1+AnnualRateofRetum)2 e. How is the annual fate of rotum calculated in part d related to the geometric rase of return? When you are evaluating the performance of an investment that has been held for several years, what type of average rate of retum (arthmetic or geometric) should you ute? Why? a. Enter the annual rate of retum for each year for Harris in the table below. (Round to two decimal places)

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