1. From the S&P 500 prices, calculate daily returns as Rt+1 = ln(St+1) ln(St ) where...

Question:

1. From the S&P 500 prices, calculate daily returns as Rt+1 = ln(St+1) − ln(St )

where St+1 is the closing price on day t + 1, St is the closing price on day t , and ln is the natural logarithm. Plot the closing prices and returns over time.

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: