TASER International, Inc., develops, manufactures, and sells nonlethal self-defense devices known as Tasers and markets primarily to law enforcement, corrections institutions, and the military. TASER's stock price in 2010 increased by 1.08%, and in 2011, it increased by 2.4%.
a. Compute the geometric mean rate of return per year for the two-year period 2010-2011.
b. If you purchased $1,000 of TASER stock at the start of 2010, what was its value at the end of 2011?
c. Compare the result of (b) to that of Problem 3.19 (b).