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29 Log price relative [LO 1] An investor purchases 1000 shares at $5.50 per share on 31 May 2014. Over the next 6 months the

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29 Log price relative [LO 1] An investor purchases 1000 shares at $5.50 per share on 31 May 2014. Over the next 6 months the investor notes down the price of the share at the end of each month. The result is shown below: End of June $5.85 End of July $6.12 End of August $5.75 End of September $5.75 End of October $6.44 End of November $6.60 There were no dividends paid in this period. Calculate, for each month, the log price relative, using natural (base e) logarithms. What does the sum of the log price relatives represente Compare this sum to en($6.60/$5.50) Explain

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