Answer Happy

(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividend Brangus cattle Comapny $14 10 Time 1 2 3 -9AU 5 13 23 29 (Click on the joon in order to copy its contents into a spreadsheet.) a. Calculate the annual rate of retum for each year from the above information. b. What is the arithmetic average rate of return eamed by investing in Brangus Catte Company's stock over this period? c. What is the geometric average rate of retum eamed by investing in Brangus Cattle Company's stock over this period? d. Which type of average rate of retum best describes the average annual rate of retum eamed over the period (the arithmetic or geomatic? Why? a. The annual rate of return at the end of year 2 % (Round to two decimal places)