Exercise

Monthly compounding

Assume that all twelve months have the same return as the simple monthly return between the end of December 2004 and the end of January 2005. What would be the annual return with monthly compounding in that case?

Your workspace still contains the vector sbux with the adjusted closing price data for Starbucks stock over the period December 2004 through December 2005.

Instructions

50 XP

Possible Answers

-172.73%
-160.92%
-82.22%
-80.72%
-84.50%

Take Hint (-15 XP)