Q1. If a stock decreases from $90 to $80, the continuously compounded rate of return for the period is: A) -0.1250. B) -0.1000. C) -0.1178.
Q2. Given a holding period return of R, the continuously compounded rate of return is: A) ln(1 + R). B) eR − 1. C) ln(1 − R) − 1.
Q3. The continuously compounded rate of return that will generate a one-year holding period return of -6.5% is closest to: A) -6.3%. B) -6.7%. C) -5.7%.
|