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A company's stock price rose 3.4% in 2011 , and in 2012 , it increased 75.5% . a. Compute the
geometric mean rate of return for the two-year period 2011 2012 . (Hint: Denote an increase of
75.5% by 0.755 .) 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 ?

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A company's stock price rose 3-4- in 2011 - and in 2012 - it increased.docx

  • 1. A company's stock price rose 3.4% in 2011 , and in 2012 , it increased 75.5% . a. Compute the geometric mean rate of return for the two-year period 2011 2012 . (Hint: Denote an increase of 75.5% by 0.755 .) 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 ?