I need explanations on why the answer is correct. If a question requires a numerical answer, provide a formula that helps to solve it.

hental Problems with Worked Solutions 1. You buy a stock for $60 and sell it for $90 after five years. What are the holding period return, the average percentage return, and the annualized compound rate of return? 2. You are given the following information concerning three stocks. Stock A B Price $30 $25 $20 Shares Outstanding 1,000,000 8,000,000 5,000,000 a) Construct a value-weighted average and a geometric average. b) A year later, stock A is selling for $25, stock B is selling for $30, and stock C continues to trade for $20. What happens to the two aggregate measures of stock prices? Why are the changes in the measures different? 3. You buy shares in a mutual fund for $89.33. The fund annually distributed $8 for 8 years after which you redeemed the shares for $100. What was the annualized return on your investment