Suppose That We Wanted to Sum the 2007 Returns on Ten

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?

A) Simple
B) Continuously compounded
C) Neither approach would allow us to do this validly
D) Either approach could be used and they would both give the same portfolio return

Correct Answer:

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