Consider the Following Statement: "Financial Data Are Collected Based on Discrete

question 35

Essay

Consider the following statement: "Financial data are collected based on discrete time periods. However, in real life time is continuous. The error when using discrete compounding instead of continuous compounding is smaller the briefer the discrete compounding period is." Do you agree or disagree with this statement and why?

---

Definitions:

Apathy

A lack of interest, enthusiasm, or concern.

APA (American Psychological Association)

A professional organization representing psychologists in the United States, also known for its publication style guide.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a guide used by healthcare professionals as the authoritative standard for diagnosing mental disorders.

AMA (American Medical Association)

A professional organization for physicians in the United States dedicated to promoting the art and science of medicine and the betterment of public health.