$($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:

Time

Marsh

$1$

$$$$11$

$2$

$11$

$3$

$16$

$4$

$6$

$5$

$11$

$($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?

Question content area bottom

Part $1$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $2$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $3$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $4$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $5$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $6$

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

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $7$

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

$$

geometric

arithmetic

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