According to the NYSE Composite Index, the stock market returns from 2009 through 2013 were as follows:

Year NYSE Return

2009 .......... 26.1%

2010 .......... 9.8

2011 .......... 6.1

2012 .......... 11.2

2013 .......... 24.5

a. Compute the simple arithmetic average return for the NYSE for the five-year period.

b. Compute the geometric average return for the NYSE for the five-year period.

c. Based on your answer in part (b), compute the dollar value that an investor would have at the end of 2013 if he or she invested $2,000 in the NYSE index at the beginning of 2009.

d. Using the annual returns given in the table, compute the value of a $2,000 initial investment at the end of each year.