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There are many ways answering this, here is one: We assume the asset price at $t=T$, $S_T = S_{T-1} \times (S_T / S_{T-1})$. Assuming continuous compounding, we can write, $S_T = S_{T-1} \times \exp(R_{T-1})$. Working the same way for the previous period, we get $S_{T} = S_{T-2} \times \exp(R_{T-1}+R_T)$. Working all the way back to the initial value of ...



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