Question: (Calculating the geometric and arithmetic average rate of return) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock

(Calculating the geometric and arithmetic average rate of return) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends:

The following table contains the annual rate of return of Marys stock for the last five years

a. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period?

b. What is the geometric average rate of return earned by investing in Marsh's stock over this period?

Year 1 rate of return 12

year 2 rate of return 11

year 3 rate of return 16

year 4 rate of return 05

year 5 rate of return 12

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