Source of monthly stock price : http://finance.yahoo.com/q/hp?s=U11.SI&a=00&b=3&c=2000&d=04&e=14&f=2016&g=m

I took the price from year 2000 to year 2016.

## 'data.frame':    197 obs. of  2 variables:
##  $ Date     : chr  "1/3/2000" "2/1/2000" "3/1/2000" "4/3/2000" ...
##  $ Adj.Close: num  8.37 7.3 7.03 7.97 6.29 7.57 8.3 9.04 8.37 8.71 ...
##          Adj.Close
## 1/3/2000      8.37
## 2/1/2000      7.30
## 3/1/2000      7.03
## 4/3/2000      7.97
## 5/1/2000      6.29
## 6/1/2000      7.57

Calculate simple returns

## [1] "numeric"
##    2/1/2000    3/1/2000    4/3/2000    5/1/2000    6/1/2000    7/3/2000 
## -0.12783751 -0.03698630  0.13371266 -0.21079046  0.20349762  0.09643329

Compare simple and continuously compounded returns

##    2/1/2000    3/1/2000    4/3/2000    5/1/2000    6/1/2000    7/3/2000 
## -0.13677954 -0.03768764  0.12549779 -0.23672342  0.18523200  0.09206245
##             sbux_ret  sbux_ccret
## 2/1/2000 -0.12783751 -0.13677954
## 3/1/2000 -0.03698630 -0.03768764
## 4/3/2000  0.13371266  0.12549779
## 5/1/2000 -0.21079046 -0.23672342
## 6/1/2000  0.20349762  0.18523200
## 7/3/2000  0.09643329  0.09206245

Graphically compare the simple and continuously compounded returns

# Plot the returns on the same graph
plot(sbux_ret, type="l", col="blue", lwd=2, ylab="Return", main="Monthly Returns")

# Add horizontal line at zero
abline(h=0)

# Add a legend
legend(x="bottomright", legend=c("Simple", "CC"), lty=1, lwd=2, col=c("blue","red"))

# Add the continuously compounded returns
lines(sbux_ccret, col="red", lwd=2)

Calculte growth of $1 invested

Would it have been a good idea to invest in the stock over the period in our data set? In case you invested $1 in YEAR 2000 , how much would that dollar be worth on 2016 ? What was the evolution of the value of that dollar over time?