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​ dividends:
Time Brangus cattle Comapny
1 ​$16
2 ​ 12
3 ​ 11
4 ​ 24
5 ​ 27
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a. Calculate the annual rate of return for each year from the above information.
b. What is the arithmetic average rate of return earned by investing in Brangus Cattle​ Company's stock over this​ period?
c. What is the geometric average rate of return earned by investing in Brangus Cattle​ Company's stock over this​ period?
d. Which type of average rate of return best describes the average annual rate of return earned over the period​ (the arithmetic or​ geometric)? ​ Why?
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Part 1
a. The annual rate of return at the end of year 2 is
enter your response here​%.
​(Round to two decimal​ places.)