Query in Quants

rishabhhurkat
Good Student
Posts: 24
Joined: Wed Dec 09, 2015 9:29 am

Query in Quants

4.If the stock’s initial price is \$30 & its year-end price is \$35, then its continuously compounded annual rate of return is:
A.15.4%
B.14.5%
C.16.4%

How to get the answer in Excel??

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

Re: Query in Quants

Hi,
Formula for Continuous compounding
FV= PV * E^(RT)

35=30*E^(R*1)
35=30*E(R)
Log(35/30)= R

So in excel, you have to type =ln(35/30)

rishabhhurkat
Good Student
Posts: 24
Joined: Wed Dec 09, 2015 9:29 am

Re: Query in Quants

The Function is not working

Can you Send mean Extract of Excel Spreadsheet using the Function given above.....

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

Re: Query in Quants

Hi Rishabh,
Continuous Compounding Annual rate of return.xlsx

rishabhhurkat
Good Student
Posts: 24
Joined: Wed Dec 09, 2015 9:29 am

Re: Query in Quants

Thank You...

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

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