question archive CONTINUOUS RATE OF RETURN 23
CONTINUOUS RATE OF RETURN 23
Subject:BusinessPrice: Bought3
CONTINUOUS RATE OF RETURN 23. Given a price series {Pt}, the continuous rate of return is ln Pt - ln Pt-1. If Pt -1 = $1,000 and the continuous rate of return is 0.04321 (that is 4.321%) between times t-1 and t, what is Pt (in dollars and cents) ?
