Question: Stock ABC had a simple ( arithmetic ) return of 3 % between t = 1 and t = 2 , and a simple (

Stock ABC had a simple (arithmetic) return of 3% between t=1 and t=2, and a simple (arithmetic) return of 4% between t=2 and t=3. Determine its logarithmic return at time t=2. Approximate your figure to four decimal places.

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