Below are the prices on the first and last day of the year for Netflix common stock for several recent years.

Netflix paid no dividends over this period. Calculate the return that an investor would have earned in each calendar year. What is the average of these annual returns? Next, calculate the average annual growth rate in Netflix stock from the first day of 2014 to the last day of 2017. Compare these two answers.

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Year 2017 2016 2015 2014 First Day $124.96 $109.00 $ 49.15 $ 52.40 Last Day $191.96 $123.80 $114.38 $48.80