$($Related to Checkpoint $7\mathrm{.}2)($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:

$($Click on the icon $$ in order to copy its contents into a spreadsheet.$)$

a$.$ Calculate the annual rate of return for each year from the above information.

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

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

d$.$ Considering the beginning and ending stock prices for the five$-$year period are the same, which type

of average rate of return $($the arithmetic or geometric$)$ better describes the average annual rate of return

earned over the period?