Answer: 0.1398

The relationship between simple return (R_t) and continuously compounded return (r_t) is given by: ``` 1 + R_t = e^{r_t} ``` Solving for r_t: ``` r_t = ln(1 + R_t) ``` Given R_t = 15% = 0.15: ``` r_t = ln(1 + 0.15) = ln(1.15) = 0.1398 = 13.98% ``` Therefore, the equivalent continuously compounded return is 0.1398 or 13.98%.

Author: Nikitesh Somanthe