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(a.) Suppose at the end of December 2022 your wealth is 1m. In 2022, the quarterly returns (continuously compounded) were as follows: 2% (Q1), -1%

(a.) Suppose at the end of December 2022 your wealth is 1m. In 2022, the quarterly returns (continuously compounded) were as follows: 2% (Q1), -1% (Q2), 3% (Q3) and -4% (Q4).

(i.) Calculate your wealth at the beginning of 2022.

(ii.) What are the annual arithmetic and annual continuously

compounded (i.e. n-period) returns for 2022?

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