$($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?

a$.$ The annual rate of return at the end of year $2$ is

$\%.($Round to two decimal places.$)$

The annual rate of return at the end of year $3$ is

$\%.($Round to two decimal places.$)$

The annual rate of return at the end of year $4$ is

$\%.($Round to two decimal places.$)$

The annual rate of return at the end of year $5$ is

$\%.($Round to two decimal places.$)$

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

$\%.($Round to two

decimal places.$)$

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

$\%.($Round to two

decimal places.$)$

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

average

rate of return better describes the average annual rate of return earned over the period. $($Select from the drop$-$down

menu.$)$