A company's stock price rose 362.7% in 2004, but dropped 78.0 in 2005.
a. Compute the geometric mean rate of return for the two year period 2004-2005. (Hint: Denote a decrease of 78.0% by -0.78)
b. If someone purchased $1,000 of the company's stock at the start of 2004, what was its value at the end of 2005?
c. In 2006, the company's stock increased by 8.5%. Compute the geometric mean rate of return for the three year period 2004-2006.
A. The geometric mean rate of return per year for the two year period - 2005 was ____%
B. If someone purchased $1,000 of the company's stock at the start of 2004, its value at the end of 2005 was $___
C. The geometric mean rate of return for the three-year period 2004 - 2006 was ____%