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(Solving a comprehensive problem) Use the end-ofyear stock price data in the popup window, ; to answer the following questions for the Harris and Pinwheel

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(Solving a comprehensive problem) Use the end-ofyear stock price data in the popup window, ; to answer the following questions for the Harris and Pinwheel companies, a. Compule the annual rates of tetum for each time period and for both firms. b. Calculate both the anthmetic and the geometic mean rates of return for the entire three-year period using your annual fates of retum from part a. (Note: you may assume that nether firm pays any dividends.) c. Compute a three-year rate of retum spanning the entire period (l.e., using the ending price for pariad 1 and ending price for period 4 ). d. Since the rate of retum calculated in part c is a three-year rate of return, convertit to an annuai rale of retum by using the following equason (1+Three-YearRateofReturn)=(1+AnnualRateofRetum)2 6. How is the annual rate of retum calculated in part d reiated to the geometric rate of feturn? When you are evaluating the performance of an investment that has been heid for several years, what type of average rate of retum (arthmetic or geometric) ahould you use? Why? a. Enter the annual rate of retuen for each year for Harris in the table below. (Round to wo decimal paces)

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