Financial Risk Manager Part 1
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What is the value of the simple return at time 4?
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TTanishq
A
1.88%
B
-1.97%
C
-1.88%
D
1.97%
Explanation:
The correct answer is C (-1.88%) as explicitly stated in the provided text. This question appears to be testing understanding of simple return calculations in quantitative analysis. Simple return is typically calculated as (Current Price - Previous Price) / Previous Price. In this case, the negative return of -1.88% indicates a decrease in value at time 4 compared to the previous period.
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