do not use exell, i need to write the steps. quistions 1 to 6

Mini-Case ac- After graduating from college last spring with a major i Date counting and finance, Jim Hale took a job as an analyst trainee Closing Price Date Closing Price 1-Nov-11 $5.69 Ar an investment company in Chicago. His first few weeks 1-Jun-12 $5.73 1-Dec-11 5.4 were filled with a series of rotations throughout the firm's vari 2-Jul-12 4.06 s operating units, but this week he was assigned to one of the 3-Jan-12 6.71 1-Aug-12 3.72 firm's traders as an analyst. On his first day. Jim's boss called 1-Feb-12 7.35 4-Sep-12 3.37 him in and told him that he wanted to do some rudimentary 1-Mar-12 8.02 1-Oct-12 2.05 facturer called Advanced Micro Devices, Inc. (AMD). Specifi- alysis of the investment returns of a semiconductor manu- 2-Apr-12 7.36 1-Nov-12 1.88 6.08 cally, Jim was given the following month-end closing prices 1-May-12 for the company spanning the period of November 1, 2011, He was then instructed by his boss to complete the follow- ing tasks using the AMD price data (note that AMD paid no dividend during the period being analyzed). drough November 1, 2012: Questions 12 $ 1. Compute AMD's monthly realized rates of return for the entire year. 2. Calculate the average monthly rate of return for AMD us- ing both the arithmetic and the geometric averages. 3. Calculate the year-end price for AMD, computing the com- pound value of the beginning-of-year price of $5.69 per share for 12 months at the monthly geometric average rate of return calculated earlier: End-of-Year Beginning-of-Year Stock Price Stock Price Geometric Average 1 + Monthly Rate of Return Compute the annual rate of return for AMD using the be- ginning and ending stock prices for the period (i.c. $5.69 5. Now calculate the compound annual rate of return using the geometric average monthly rate of return: Compound Annual Geometric Average - 1 Rate of Return Monthly Rate of Return 6. If you were given annual rate of return data for AMD's or any other company's stock and you were asked to esti- mate the average annual rate of return an investor would have earned over the sample period by holding the stock, would you use an arithmetic or a geometric average of the historical rates of return? Explain your response as if you were talking to a client who has had no formal training in finance or investments 12 ( und $1.88)