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1

Transmuting one to the other is pretty straightforward without the underlying sequence of prices. To go from log to simple: $R = exp(r) - 1$ To go from simple to log: $r = log(R+1)$


1

You are missing the weights for b and c. Since it does not explicitly state that the portfolio is rebalanced each month, it would not be correct to use 1/3 to calculate monthly returns. If you insist using monthly rebalanced equally weighted portfolio, then use simple returns to calculate the Hedge Fund return for each month, convert to log space, and then ...


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