Question: Use graph to compare the relationship between the simple return and the log return (continuously compounding return). In excel, use rand() generate a sequence of

Use graph to compare the relationship between the simple return and the log return (continuously compounding return).

In excel, use rand() generate a sequence of returns with values between -1 and 1. Name the column by R. Then, compute log return by the formula ln(1+Rt) and generate a sequence of log returns. Draw the two lines in one plot and compare the relationship between R and ln(1+Rt).

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