Calculating Returns Microsoft's adjusted closing stock prices at 1 point the end of each of the past 4 months worn. The simple net return for month 1 , ie R1 is: 1 point Convert your answer above to an annual return: 31 point The continuous compounded return for month 1 , ie r1 is 4 1 point: Convert your answer above to an annual return: 5 1 point The arithmetic average of simple monthly returns is