Assume that an asset has a simple return in one period of (R_{1}), and in a subsequent
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Assume that an asset has a simple return in one period of \(R_{1}\), and in a subsequent period of equal length has a simple return of \(R_{2}\). What is the total return of the asset over the two periods? (Compare equation (1.26) for \(\log\) returns.)
\(r=\sum_{i=2}^n r_i . \tag{1.26}\)
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