Hi,

How do i Compute continuously compounded monthly return of the stocks and index using adjusted Close Price (Adj Close) .

Use historical prices of the Australia market index All Ordinaries (^AORD) and the following four

companies traded in the Australian market: Wesfarmers Ltd. (WES.AX), BHP Billiton Ltd.

(BHP.AX), AGL Energy Ltd. (AGL.AX) and ANZ Ltd. (ANZ. AX) provided in the attachment,

answer the following question

???????? = ln (???????????????????? ???????????????????? ???? ) - ln (???????????????????? ???????????????????? ???? ?1 )

Hint: Use Excel function ln to compute the compounded monthly return.

Date wes ^AORD 1/3/2012 2/1/2012 3/1/2012 4/2/2012 5/1/2012 6/1/2012 7/2/2012 8/1/2012 9/3/2012 10/1/2012 11/1/2012 12/3/2012 1/2/2013 2/1/2013 3/1/2013 4/2/2013 5/1/2013 6/3/2013 7/1/2013 8/1/2013 9/2/2013 10/1/2013 11/1/2013 12/2/2013 1/2/2014 2/3/2014 3/3/2014 4/1/2014 5/1/2014 6/2/2014 7/1/2014 8/1/2014 9/1/2014 10/1/2014 11/3/2014 12/1/2014 1/2/2015 2/2/2015 3/2/2015 4/1/2015 5/1/2015 6/1/2015 7/1/2015 8/3/2015 9/1/2015 10/1/2015 11/2/2015 12/1/2015 1/4/2016 4325.700195 4388.100098 4420 4467.200195 4133.700195 4135.5 4289.399902 4339 4406.299805 4535.399902 4518 4664.600098 4901 5120.399902 4979.899902 5168.600098 4914 4775.399902 5035.700195 5125.299805 5217.700195 5420.299805 5314.299805 5353.100098 5205.100098 5415.399902 5403 5470.799805 5473.799805 5382 5623.100098 5624.600098 5296.799805 5505 5298.100098 5388.600098 5551.600098 5898.5 5861.899902 5773.700195 5774.899902 5451.200195 5681.700195 5222.100098 5058.600098 5288.600098 5218.200195 5344.600098 5056.600098 21.48828 21.33076 22.00517 22.19568 21.40403 21.91717 23.88896 26.30179 26.10369 26.49227 27.08658 28.07709 28.64847 32.12 31.47025 33.95185 30.71877 31.00057 31.75212 32.97905 33.36028 34.85269 34.38044 35.27759 33.64349 35.36802 33.91869 35.1704 35.70562 34.45399 36.2491 36.99894 36.01655 37.70807 35.06371 35.31768 36.90071 38.15949 38.25522 38.03766 37.99415 33.965 36.94118 36.84217 35.53738 35.70954 34.51348 37.70297 38.21038 bhp agl 26.58931 9.83352 26.16941 9.40218 25.0893 10.27011 25.77074 10.43027 23.17554 10.92459 22.7986 10.62249 23.14653 11.29138 23.04506 11.25665 24.60285 11.10827 25.50389 10.78915 25.60812 10.663 27.62614 11.41245 27.90911 11.42732 27.60375 11.82799 24.97021 12.10473 24.92445 12.11238 26.5861 10.99043 23.91071 11.05144 26.40314 11.10489 27.24926 12.02078 28.01282 12.14841 29.51777 12.32172 29.30614 11.82537 29.77636 11.84108 28.66338 11.97501 30.0821 12.32954 29.34146 12.31114 30.37128 12.7896 29.77591 12.48956 28.8829 12.55439 31.11947 11.98673 29.50237 11.93383 28.01808 11.85569 28.09253 11.89948 25.57776 11.47918 24.29555 11.69809 24.20464 12.43359 27.83615 13.55358 26.70274 13.68867 27.51168 13.67966 27.25004 14.61625 24.91091 14.00387 24.35835 15.02151 23.18878 15.6737 21.55731 14.81996 22.33345 15.52523 17.55048 15.35819 17.32734 16.77801 14.8922 17.26056 2/1/2016 3/1/2016 4/1/2016 5/2/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/3/2016 11/1/2016 12/1/2016 4947.899902 5151.799805 5316 5447.799805 5310.399902 5644 5529.399902 5525.200195 5402.399902 5502.399902 5719.100098 36.59933 38.80896 40.04486 38.04121 37.54498 40.19466 40.9908 42.59411 39.60962 40.35333 40.70104 15.10564 16.64164 20.41216 18.83288 18.40845 19.26719 20.1654 22.38 23.07 24.41 25.06 17.44647 17.50355 17.39891 17.68429 18.35019 19.57734 18.13243 18.62118 18.74825 20.50773 21.59275 anz 21.41 21.950001 23.26 23.91 20.9 22.030001 23.540001 24.82 24.75 25.450001 24.360001 25.049999 26.58 28.719999 28.530001 31.84 27.540001 28.58 29.76 29.690001 30.780001 33.84 31.9 32.23 30.129999 32.139999 33.060001 34.470001 33.490002 33.34 33.970001 33.43 30.92 33.5 31.92 32.09 33 35.34 36.639999 33.990002 33.189999 32.200001 32.68 27.93 27.08 27.209999 27.15 27.93 24.18 22.4 23.459999 24.27 25.48 24.120001 25.84 26.9 27.629999 27.85 28.41 30.42