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Use the end-of-year stock price data table below to answer the following questions for the Harris and Pinwheel companies. Data Table: The question: Data table

Use the end-of-year stock price data table below to answer the following questions for the Harris and Pinwheel companies.

Data Table:

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The question:

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Data table 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: type of average rate of return (anithmetic or geometric) should you use? Why? a. Enter the annual rate of return for each year for Harris in the table below. (Round to two decimal places.)

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