(Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, to an a. Compute the annual rates of retum 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 e. Compute a three-year rate of retum spanning the entire period (.e, using the ending price for period 1 and d. Since the rate of return calculated in part e is a three-year rate of return, convert it to an annual rate of reli Three Year Rate of Rotum e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are of return (arithmetic or geometric) should you use? Why? Annual Rate Value of Pinwheel Stock Value of Harris Stock Annual Rate of Retur Time of Return $18 $11 6 33 29 10 3 24 13 Data table Time 6 33 3 10 29 13 24 (Cilok on the loon in onder to copy its contents into a apresent) Print Done *** Harris $11 Pinhai $18 (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window.o a. Compute the annual rates of retum 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 c. Compute a three-year rate of return spanning the entire period 6.a, using the ending price for period 1 and d. Since the rate of return calculated in part e is a three-year rate of return, convert it to an annual rate of re (. Three-Year Rate of Rehum e. How is the annual rate of retum calculated in part d related to the geometric rate of return? When you are of return (arithmetic or geometric) should you use? Why? Annual Rata Time Value of Harris Stock Annual Rate of Return Value of Pinwheel Stock of Return $18 1 $11 6 2 -45.45% 33 29 10 66.67% 24 13 30.00% 000 *** Data table $18 33 10 29 13 24 (Click on the icon in order to copy its contents into a apre) Print Done Harris $11 6 Data table Time 1 2 (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, to an a. Compute the annual rates of return for each time period and for both firs b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using c. Compute a three-year rate of return spanning the entire period (.e., using the ending price for period 1 and d. Since the rate of return calculated in part e is a three-year rate of return, convert it to an annual rate of ret 1+ Three-Year Rate of Return e. How is the annual rate of retum calculated in part d related to the geometric rate of return? When you are e of return (arithmetic or geometric) should you use? Why? CHIC b. The arithmetic average rate of return earned by investing in Harris stock over this period is % (Round to two decimal places) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is. (Round to two decimal places) The geometric average rate of return earned by investing in Harris stock over this period is % (Round to two decimal places.) The geometric average rate of retum earned by investing in Pinwheel stock over this period %. (Round to two decimal places) Pinwheel $18 33 3 10 29 13 24 (Click on the icon in order to copy its contents into a spade) Print Done Harrie $11 A Next Data table Time 1 2 33 3 29 4 13 24 (Click on the icon in order to copy its contents into a spreadsheet) Print Done (Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, to an a. Compute the annual rates of retum for each time period and for both firms. b. Calculate both the arithmetic and the geometric mean rates of retum for the entire three-year period using c. Compute a three-year rate of return spanning the entire period (ie, using the ending price for period 1 and d. Since the rate of return calculated in part e is a three-year rate of return, convert it to an annual rate of ret Three-Year Rate of Retur e. How is the annual rate of return calculated in part d related to the geometric rate of return? When you are of return (arithmetic or geometric) should you use? Why? s. The ree-year rate of reum spanning the ene period form (ou to ma % (Round to two decimal places.) The three-year rate of return spanning the entire period for Pinwheel is d. The annual rate of retum converted from the three-year rate in part e for Harris is%. (Round to two decimal places) The annual rate of return converted from the three-year rate in part e for Pinwheel is. (Round to two decimal places) e. How is the annual rate of retum calculated in part d related to the geometric rate of retum? (Select the best choice below) Harris $11 6 10 Pinwheel $18
