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1. Let P, is the price of an asset at time t and D, is the dividend at time t. Answer the following questions

 

1. Let P, is the price of an asset at time t and D, is the dividend at time t. Answer the following questions with solving process. (25) t P D 1 52 0.2 2 54 0.2 3 53 0.2 4 59 0.25 (a) What is the net return at time t = 2? (b) What is the gross return at time t = 4? (e) What is the log return at time t = 3?

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