# Question

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

a. Compute the rate of return for each year.

b. Compute the mean and median of the rates of return.

c. Compute the geometric mean of the rates of return.

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 geometricmean.

a. Compute the rate of return for each year.

b. Compute the mean and median of the rates of return.

c. Compute the geometric mean of the rates of return.

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 geometricmean.

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