Letand
. Suppose that we compound at a rate of
at a frequency of
times per year.
Then the return over the course of a year is:. If we compound continuously, we obtain a return of
.
I want to show that continuous compounding yields a higher return than any other frequency of compounding, or thatfor all
. I approached this by trying to prove that
for
and then showing that
is the supremum of the series
I am having trouble showing that- any hints? Thanks!


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