How would we compute the gross return 1 + R t (k) over some time period k
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How would we compute the gross return 1 + Rt (k) over some time period k using log returns? In this case, what is the simple arithmetic mean of these gross returns? Is the average of this multiperiod correct (unbiased)? Assuming that (1 + R1) = 1. 1111, (1 + R2) = 1. 0500, and (1 + R3) = 1. 0476, compute these returns. What is the formula for the geometric mean return?
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Investment Valuation And Asset Pricing Models And Methods
ISBN: 9783031167836
1st Edition
Authors: James W. Kolari, Seppo Pynnönen
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