A Continuously Compounded Return Is Always Less Than the Equivalent

question 31

True/False

A continuously compounded return is always less than the equivalent discrete return.

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Definitions:

Probate

The legal process through which a deceased person's will is validated, and their assets are distributed under the supervision of a court.

Resided

Generally means to live in a particular place, but in a financing context, it is NO.

Trustor

An individual or entity that creates a trust by transferring assets to a trustee, who manages the assets for the benefit of a third party, the beneficiary.

Fiduciary

A person or organization that acts on behalf of another individual or individuals, managing assets for their benefit with a duty to act in their best interest.