Question: Please answer a and b 1. (6) Let a hypothetical month have exactly four weeks. Assume an investment of 100 is made at the beginning
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 al), what is the 1-month return with weekly compounding and, alternatively, with monthly compounding? How do the calculation methods in a) and b) differ
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