Suppose that we wanted to sum the 2007 returns on ten shares to calculate the return on a portfolio over that year. What method of calculating the individual stock returns would enable us to
2/20
Suppose that we wanted to sum the 2007 returns on ten shares to calculate the return on a portfolio over that year. What method of calculating the individual stock returns would enable us to do this?
Simple
Continuously compounded
Neither approach would allow us to do this validly
Either approach could be used and they would both give the same portfolio return