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An Investor Wants to Calculate the Continuously Compounded Return for Month

Question 31

Multiple Choice

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t,then the month t continuously compounded return is:


A) 30.50%30.50 \%
B) 3365%3365 \%
C) 40.00%40.00\%
D) \47.69 \%\)

Correct Answer:

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