Facebooks stock price in 2015 increased by 34.15%, and in 2016, it increased by 9.93%. Source: Data

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Facebook’s stock price in 2015 increased by 34.15%, and in 2016, it increased by 9.93%.

Source: Data extracted from finance.yahoo.com, January 9, 2017.

a. Compute the geometric mean rate of return per year for the two-year period 2015–2016. (Hint: Denote an increase of 9.93% as R1 = 0.0993.)

b. If you purchased $1,000 of Facebook stock at the start of 2015, what was its value at the end of 2016?

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

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Basic Business Statistics Concepts And Applications

ISBN: 9780134684840

14th Edition

Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan

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Question Posted: Jun 17, 2019 07:47 AM

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Facebooks stock price in 2015 increased by 34.15%, and in 2016, it increased by 9.93%. Source: Data

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a 1 03415 1 00993 12 1 02144 or ...View the full answer

Basic Business Statistics Concepts And Applications

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