Consider the exchange rates between the U.S. dollar and the Euro from January 4, 1999 to March 8, 2013. See the file d-exuseu.txt. (a) Compute the daily log return of the exchange rate.

To compute the daily log return of the exchange rate, you can use the following steps in R:

1. Load the data into R using the `read.table()` function.

2. Create a time series object using the `ts()` function, specifying the start and end dates as well as the frequency (in this case, daily).

3. Use the `diff()` function to compute the difference between each day's exchange rate and the previous day's exchange rate.

4. Use the `log()` function to compute the natural logarithm of the ratio of each day's exchange rate to the previous day's exchange rate.

Here's the code to perform these steps:

# Load the data
exch <- read.table("d-exuseu.txt", header=TRUE)

# Create a time series object
exch_ts <- ts(exch$XRATE, start=c(1999, 1), end=c(2013, 3), frequency=365)

# Compute the daily log return
log_returns <- diff(log(exch_ts))

The resulting `log_returns` object will be a time series object containing the daily log returns of the exchange rate.