Calculating Returns Microsoft's adjusted closing stock prices at the end of each of the past 4 months mero. 2 The simple net return for month 1 , ie R1 is: 31 point Convert your answer above to an annual return: 4 point The continuous compounded return for month 1 , ie r1 is 5 point Convert your answer above to an annual return: 6 1 point The arithmetic average of simple monthly returns is