General Electric (GE) is one of the world's largest companies; it develops, manufactures, and markets a wide range of products, including medical diagnostic imaging devices, jet engines, lighting products, and chemicals. In 2008, the stock price dropped 53.94%, while in 2009, the stock price rose 0.13%.
a. Compute the geometric mean rate of return per year for the two-year period 2008-2009.
b. If you purchased $1,000 of GE stock at the start of 2008, what was its value at the end of 2009?
c. Compare the result of (b) to that of Problem 3.20 (b).