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MMLU / Which of the following is NOT a feature of continuously compounded returns (i.e.…

Problem

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question

Which of the following is NOT a feature of continuously compounded returns (i.e. log-returns)?

choices

  1. They can be interpreted as continuously compounded changes in the prices
  2. They can be added over time to give returns for longer time periods
  3. They can be added across a portfolio of assets to give portfolio returns
  4. They are usually fat-tailed

subject

econometrics

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