TASER International, Inc., develops, manufactures, and sells nonlethal self-defense devices known as Tasers and markets primarily to law enforcement, corrections institutions, and the military. TASER's stock price in 2011 increased by 2.4%, and in 2012, it increased by 74.6%.

Source: Data extracted from finance.yahoo.com, March 29, 2013.

a. Compute the geometric mean rate of return per year for the two-year period 2011-2012. (Denote an increase of 2.4% as R1 = 0.024.)

b. If you purchased $1,000 of TASER stock at the start of 2011, what was its value at the end of 2012?

c. Compare the result of (b) to that of Problem 3.19 (b).