Continuously compounded variance

[ayousaf]

Suppose we have 3 records of a stock price:
T=0 S=12
T=1 S=14
T=2 S=20
The continuously compounded rate of return between each of these holdings is Ln(St-1/st) i.e.
Ln(14/12) = 0.1542
Ln(20/14) = 0.3567
My question is, what is the formula for calculating the variance? Can someone show me how to do it?

 

[S2000magician]

The same as for any other returns:
[Σ(ri – μr)²] / n.

 

[ayousaf]

Yeah, I think I just messed up the calculation, hence why I thought there might be another way to do it! Thanks S200

 

[S2000magician]

ayousaf wrote:Yeah, I think I just messed up the calculation, hence why I thought there might be another way to do it! Thanks S200

You’re welcome.
(Though I don’t know why you discounted me by 90%.)