(Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, LOADING..., to answer the following questions for the Harris and Pinwheel companies.

Time Harris Pinwheel 1 10 17 2 6 35 3 11 28 4 13 25

a. Compute the annual rates of return for each time period and for both firms.

b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from part a. (Note: you may assume that neither firm pays any dividends.)

c. Compute a three-year rate of return spanning the entire period (i.e., using the ending price for period 1 and ending price for period 4).

d. Since the rate of return calculated in part c is a three-year rate of return, convert it to an annual rate of return by using the following equation: