Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

for log returns rt N (, ), which is true: 1. the simple return has a log normal distribution 2. Log can be obtained as

for log returns rt N (, ), which is true:

1. the simple return has a log normal distribution

2. Log can be obtained as the limit of the gross simple return when interest is added infinitely

3. if log return is constant over time, the multiperiod simple return increases over the period

4. if log return is constant over time, the annualized multiperiod log return increases over the period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions