Compute the returns and log returns and plot them against each other. As discussed in Sect. 2.1.3, does it seem reasonable that the two types of daily returns are approximately equal? Discuss how the...

Solution
Given:
It is required to find the price returns, log returns, document the results, and plot them against one another.
Use the R code below.
> data = read.csv("MCD_PriceDaily.csv")
> head(data)
Date Open High Low Close Volume Adj.Close
1 01-04-2010 62.63 63.07 62.31 62.78 5839300 53.99
2 01-05-2010 62.66 62.75 62.19 62.30 7099000 53.58
3 01-06-2010 62.20 62.41 61.06 61.45 10551300 52.85
4 01-07-2010 61.25 62.34 61.11 61.90 7517700 53.24
5 01-08-2010 62.27 62.41 61.60 61.84 6107300 53.19
6 01-11-2010 62.02 62.43 61.85 62.32 6081300 ...