TASER International, Inc., develops, manufactures, and sells nonlethal self-defense devices known as tasers. Marketing primarily to law enforcement, corrections institutions, and the military, TASER's popularity has enjoyed a rollercoaster ride. The stock price in 2008 decreased by 63.31%, and in 2009, the stock price decreased by 17.05%.
a. Compute the geometric mean rate of return per year for the two-year period 2008-2009.
b. If you purchased $1,000 of TASER stock at the start of 2008, what was its value at the end of 2009?
c. Compare the result of (b) to that of Problem 3.19 (b).