2.99 See Answer

Question: General Electric (GE) is one of the


General Electric (GE) is one of the world’s largest companies; it develops, manufactures, and markets a wide range of products, including medical diagnostic imaging devices, jet engines, lighting products, and chemicals. In 2015, the stock price rose 23.27%, and in 2016, the stock price rose 1.44%.
Source: Data extracted from finance.yahoo.com, January 9, 2017.
a. Compute the geometric mean rate of return per year for the two year period 2015–2016.
b. If you purchased $1,000 of GE 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 3.20 (b).

2.99

See Answer