Q.3536 The price of a stock increases from $24 to $40 in two years. What is the continuously compounded annual return for the stock? | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
The continuously compounded 2-year return = ln(40/24) = 51.08%. Annually compounded rate of return = (51.08% / 2) = 25.54%
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Q.3536 The price of a stock increases from $24 to $40 in two years. What is the continuously compounded annual return for the stock?