A company's stock price rose 3.4% in 2011 , and in 2012 , it increased 74.4% . a. Compute the geometric mean rate of return for the two-year period 2011 2012 . (Hint: Denote an increase of 74.4% by 0.744 .) b. If someone purchased $1 , 000 of the company's stock at the start of 2011 , what was its value at the end of 2012 ? .

1. A company's stock price rose 3.4% in 2011 , and in 2012 , it increased 74.4% . a. Compute the
geometric mean rate of return for the two-year period 2011 2012 . (Hint: Denote an increase of
74.4% by 0.744 .) b. If someone purchased $1 , 000 of the company's stock at the start of 2011 ,
what was its value at the end of 2012 ?