(Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, to answer the following questions for the Hamis and Pinwheel cornpanies. a. Compute the annual rales of retum for each time period and for both frms b. Calculate both the arithmetic and the geometric mean rates of retum for the entire three-year period using your annual rates of retum from part a. (Note: you may assume that neither firm pays any dindends.) c. Compule a three-year rate of return spanning the entre period (le. using the ending price for period 1 and ending price for period 4). d. Since the rate of refum calculated in part e is a thee-year fate of retuen, convert it to an annual fate of return by using the following equation: (1+Three-YearReateofRetumn)=(1+AnnualRaseofPetum)3 6. How is she annual rate of return calculated in part d relaled to the geometric rate of cotum? When you are evaluating the performance of an investment that has been heid for several years, what a. Enles the annual rate of retum for each year for Harris in the table below. (Round to two decimal places.) b. The arithmetic average rate of return earned by investing in Harris stock over this period is \%. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is %. (Round to two decimal places.) The geometric average rate of return earned by investing in Harris stock over this period is \%. (Round to two decimal places.) The geometric average rate of return earned by investing in Pinwheel stock over this period is \%. (Round to two decimal places.) c. The three-year rate of return spanning the entire period for Harris is \%. (Round to two decimal places.) The three-year rate of return spanning the entire period for Pinwheel is %. (Round to two decimal places.) d. The annual rate of return converted from the three-year rate in part c for Harris is \%. (Round to two decimal places.) The annual rate of return converted from the three-year rate in part c for Pinwheel is \%. (Round to two decimal places.) . How is the annual rate of return caiculated in part a related to the geomemnc rate of return' (Select the best choice below.) A. The annual rate of retum calculated in part d is not rolated to the geometric average rate of return. B. The annual rate of return calculated in part d is nothing but the goometric average rate of return calculated in a different way C. The annual rate of refurn calculated in part d is the same as the geometric rate of retum in this problem but chis is only a coincidence. D. The annual rate of return calculated in part d is nothing but the arithmetic average rate of refurn calculated in a ditferent way. When you are evaluabing the pertormance of an investment that has been held for soveral years, what bye of average rate of rotum (arahmetic or geometric) should you use? Why? (Seiect t thoice below.) A. Arithmetic average retum beter describes the average annual rate of return over a period because it is a simple werage, so it answers the cueston conceming the expected mate of rae over a poriod, B. The geometric rate of return should be used. It better describes the average annual rate of retum over a period because it compounds at the same rate while the arithmetic rate of refum best used for a single period. C. Geometric average retum better describes the average annuat rate of retum over a poriod because it is a simple average, so it answers the question conceming the expected rain of rehe over a period. D. The anthmetic rate of return should be used. It better describes the average annual rate of return over a perigd because a compounds at the same rate whie the geometric rate of rofurn is