as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
negative properties of continuously compounded returns
user
well, one can easily have rates below -100%.  suppose i start with $100, and end up with $9 after a year. what was my rate of return? it could be -91%, -181%, -218%, or -241%, or something else, depending on the compounding method.  we always have that the final amount equals the initial amount times a growth factor g, and we can express this using a rate r and a day count fraction t. in this case, we have t = 1, and b(t) = b(0) * 0.09, so: so, depending on how we compound, we have a rate of return of -91%, -181%, -218%, or -241%. this nicely illustrates that:
assistant