Suppose that you bought a stock 6 years ago at $12. The stock's price at the end of each year is shown here.

Year 1 2 3 4 5 6

Price 10 14 15 22 30 25

a. Compute the rate of return for each year (to 3 decimals).

Year 1 rate of return =

Year 2 rate of return =

Year 3 rate of return =

Year 4 rate of return =

Year 5 rate of return =

Year 6 rate of return =

b. Compute the mean and median of the rates of return (to 3 decimals).

Median =

c. Compute the geometric mean of the rates of return (to 3 decimals).

d. Explain why the best statistic to use to describe what happened to the price of the stock over the 6-year period is the geometric mean.