1. (6) Let a hypothetical month have exactly four weeks. Assume an investment of 100 is...

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1. (6) Let a hypothetical month have exactly four weeks. Assume an investment of 100 is made at the beginning of week one and it has the following end of week values: W1 = 100.75; W2 = 101; W3 = 100.95; and W4 = 101.05 a) Calculate the weekly arithmetic returns. What is the 1-month return with weekly compounding and, alternatively, with monthly compounding? b) Calculate the weekly logarithmic returns. As in a), what is the 1-month return with weekly compounding and, alternatively, with monthly compounding? How do the calculation methods in a) and b) differ? 1. (6) Let a hypothetical month have exactly four weeks. Assume an investment of 100 is made at the beginning of week one and it has the following end of week values: W1 = 100.75; W2 = 101; W3 = 100.95; and W4 = 101.05 a) Calculate the weekly arithmetic returns. What is the 1-month return with weekly compounding and, alternatively, with monthly compounding? b) Calculate the weekly logarithmic returns. As in a), what is the 1-month return with weekly compounding and, alternatively, with monthly compounding? How do the calculation methods in a) and b) differ?