Problem:
Time. Caswell
1. $9
2. $14
3. $10
4. $7
5. 9
Question 1: Calculate the average rate of return for each year from the above information
Question 2: What is the arithmetic average rate of return earned by investing in caswell stock over is period
Question 3: What is the geometric average rate of return?
Question 4: Which type of average rate of return earned over the period?
Question 5: The annual rate of return at the end of year 2 is what percent?
Describe your answer and give examples.