Question 19
Assume an investor purchases a stock for $50. One year later, the stock is worth $60. After one more year, the stock price has fallen to the original price of $50. Calculate the continuously compounded return for year 1 and year 2.
Year 1 Year 2
A. 18.23% 16.67%
B. 18.23% -18.23%
C. -18.23% 16.67%
D. -18.23% -18.23%