i have to calculate long-run and short run returns, short-run 1st day, 1month, 3months and 6 months returns. And for long-run 1,2 and 3 year return.
im mutiplying (1+R)*(1+R).......till 6 months and similarly for long-run returns from first year return (1+R) to three year return (1+R)*(1+R)*(1+R)
am i doing right way?
how to calculate the mean returns for 1st, 1,3 and 6 months of different firms, is it by using arithamatic mean or geometric mean?
your answers will be very helpful.
thank you.
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