An Investor Wants to Calculate the Continuously Compounded Return for Month

question 33

Multiple Choice

An investor wants to calculate the continuously compounded return for month t for a company.If the share price of the company was $4.50 at the start of month t and $7.25 at the end of month t and the company paid a dividend of $0.80 in month t,then the month t return is:

• A) \(16.40 \%\)
• B) \(58.16 \%\)
• C) \(26.20 \%\)
• D) \(47.70 \%\)

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