A conglomerate corporation develops, manufactures, and markets a wide range of products, including medical diagnostic imaging devices, jet engines, lighting products, and chemicals. In 2013, the stock price rose 30.97%, and in 2014, the stock price declined 9.3%. If one purchased $1,000 of some social media stock at the start of 2013, its value would be $2,970.42 at the end of 2014. Complete parts (a) through (c) below.
a. Compute the geometric mean rate of return per year of the two-year period 2013–2014. (Hint: Denote an increase of 30.97% as R1 = 0.3097).
The geometric mean rate of return is % per year.
(Round to two decimal places as needed.)