Graphically compare the simple and continuously compounded returns

In this exercise, you will create a plot that contains both the simple and continuously compounded returns. This makes it easy to compare both types of returns.

Have a look at the sample code on the right. First of all, we have to plot the simple returns as a function of time. The argument type = l specifies a line plot, col = blue specifies that the simple returns line is blue, lwd = 2 specifies the line thickness, ylab = "Return" specifies that "Return" is the label of the y-axis and main specifies the plot's main title.

Your task is to add the continuously compounded returns to the plot. This can be done with the lines() function, having sbux_ccret as a first argument. Furthermore, the line should be red and its thickness should be set to 2. You can do that by setting the col and lwd arguments.

Exercise

Graphically compare the simple and continuously compounded returns

Instructions