Answer: −5.17%.

The continuously compounded rate of return is calculated using the formula: \[r = \ln\left(\frac{S_1}{S_0}\right)\] Where: - \(S_1\) = current price = €42.00 - \(S_0\) = price one year ago = €44.23 Calculation: \[\frac{S_1}{S_0} = \frac{42.00}{44.23} = 0.9496\] \[\ln(0.9496) = -0.0517 = -5.17\%\] Therefore, the continuously compounded rate of return is -5.17%, which corresponds to option C. **Key Concept:** Continuously compounded returns use the natural logarithm of the price ratio, which is appropriate for modeling returns over time with continuous compounding.

Author: LeetQuiz Editorial Team