Question: Hello! Could you help me with a question? Please, conduct annualized continuously compounded return for a given security if its simple net return for last
Hello! Could you help me with a question? Please, conduct annualized continuously compounded return for a given security if its simple net return for last two years is 15.8%. My solution (I'm not sure if it is correct): (1+x)^24-1=0,158
(1+x)^24=1,158
1+x=1,019
Rmonthly=1,9%
Rannual=(1+0,019)^12-1
Rannual= 25,3%
Annualized rcc=ln(1+Rannual)
Annualized rcc= ln(1+0,253)= 23,6%
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