(Calculating the geometric and arithmetic average rate of?return)??The common stock of the Brangus Cattle Company had thefollowing? end-of-year stock prices over the last five years andpaid no cash? dividends: Time Brangus cattle Comapny 1 ?$14 2 11 312 4 24 5 25 a.??Calculate the annual rate of return for each yearfrom the above information. b.??What is the arithmetic average rateof return earned by investing in Brangus Cattle? Company's stockover this? period? c.??What is the geometric average rate of returnearned by investing in Brangus Cattle? Company's stock over this?period? d.??Which type of average rate of return best describes theaverage annual rate of return earned over the period? (thearithmetic or? geometric)? ? Why? a.??The annual rate of return atthe end of year 2 is nothing?%. ?(Round to two decimal? places.)The annual rate of return at the end of year 3 is nothing?%.?(Round to two decimal? places.) The annual rate of return at theend of year 4 is nothing?%. ?(Round to two decimal? places.) Theannual rate of return at the end of year 5 is nothing?%. ?(Round totwo decimal? places.) b.??The arithmetic average rate of returnearned by investing in Brangus Cattle? Company's stock over thisperiod is nothing?%. ?(Round to two decimal? places.) c.??Thegeometric average rate of return earned by investing in BrangusCattle? Company's stock over this period is nothing?%. ?(Round totwo decimal? places.) d.??Which type of average rate of return bestdescribes the average annual rate of return earned over the period?(the arithmetic or? geometric)? ? Why????(Select the best choice?below.) A. Arithmetic average return best describes the averageannual rate of return over a period because it takes compoundinginto? account, so it answers the question concerning the expectedrate of return over a? multi-year period. B. Geometric averagereturn best describes the average annual rate of return over aperiod because it takes compounding into? account, so it answersthe question concerning the expected rate of return over a?multi-year period. C. Arithmetic average return best describes theaverage annual rate of return over a period because it is a simple?average, so it answers the question concerning the expected rate ofreturn over a? multi-year period. D. Geometric average return bestdescribes the average annual rate of return over a period becauseit is a simple? average, so it answers the question concerning theexpected rate of return over a? multi-year period. Click to selectyour answer(s).