-Consider the End of Day Prices for ANZ and BHP

$\begin{array}{|c|c|c|}\hline \text { Day } & \begin{array}{c}\text { BHP price } \\\text { (end of day) }\end{array} & \begin{array}{c}\text { ANZ price } \\\text { (end of day) }\end{array} \\\hline \text { Monday } & \$ 18.20 & \$ 24.50 \\\hline \text { Tuesday } & \$ 19.00 & \$ 24.80 \\\hline \text { Wednesday } & \$ 17.80 & \$ 25.90 \\\hline \text { Thursday } & \$ 16.55 & \$ 26.00 \\\hline\end{array}$
-Consider the end of day prices for ANZ and BHP for Monday through Thursday.Suppose an investor short sells BHP and buys ANZ,what will the continuously compounded return be on the investor's combined position if the investments have equal weight?

A) $-3.56 \%$
B) $3.56 \%$
C) $7.72 \%$
D) $15.44 \%$

Correct Answer:

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