Answer: -1.88%

The simple return is calculated using the formula: $$R_t = \frac{P_t - P_{t-1}}{P_{t-1}}$$ For time 4: $$R_4 = \frac{P_4 - P_3}{P_3} = \frac{95.67 - 97.50}{97.50} = \frac{-1.83}{97.50} = -0.01876923$$ Converting to percentage: $$-0.01876923 \times 100 = -1.876923\% \approx -1.88\%$$ The calculation shows: - Price at time 3 (P₃) = 97.50 - Price at time 4 (P₄) = 95.67 - Difference: 95.67 - 97.50 = -1.83 - Simple return: -1.83 / 97.50 = -0.01876923 = -1.88% Therefore, the simple return at time 4 is -1.88%.

Author: Nikitesh Somanthe