Question: Can someone please explain these formulas using real examples; Given the price at t, Pt, and price from previous period, Pt-1, return can be measured
Can someone please explain these formulas using real examples;

Given the price at t, Pt, and price from previous period, Pt-1, return can be measured as, ; 1 Pt-Pt-1 Arithmetic (Simple) Return: Rt Pt-1 Pt Log (Continuous) Return: rt = In In ( () = t
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
