2.99 See Answer

Question: Facebook’s stock price in 2015 increased


Facebook’s stock price in 2015 increased by 34.15%, and in 2016, it increased by 9.93%.
Source: Data extracted from finance.yahoo.com, January 9, 2017.
a. Compute the geometric mean rate of return per year for the twoyear period 2015–2016.
b. If you purchased $1,000 of Facebook stock at the start of 2015, what was its value at the end of 2016?
c. Compare the result of (b) to that of Problem 3.19 (b).

2.99

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