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ime Marsh 1 ​$1010 2 1212 3 1818 4 77 5 1010 a. Calculate the annual...

ime Marsh 1 ​$1010 2 1212 3 1818 4 77 5 1010 a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic average rate of return earned by investing in​ Marsh's stock over this​ period? c. What is the geometric average rate of return earned by investing in​ Marsh's stock over this​ period? d. Considering the beginning and ending stock prices for the​ five-year period are the​ same, which type of average rate of return​ (the arithmetic or​ geometric) better describes the average annual rate of return earned over the​ period? a. The annual rate of return at the end of year 2 is nothing​%. ​(Round to two decimal​ places.)

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Expert Solution

I HAVE CALCULATED GEOMETRIC MEAN USING EXCEL. IF YOU WANT WITH FORMULA, LET ME KNOW, WILL DO THAT ALSO. THANK YOU


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