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how do you calculate log returns. You can also use 365 instead of 1 to calculate the daily return of an investment. Using Log Returns We multiply the average of the daily log returns over the period by 252 and then apply the exponential function on it.
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For example you purchased the stock on 2015510 at 1560 sold it on 20171013 at 2530 and get dividends every year as below screenshot shown. The return or the holding period return can be calculated over a single period. If we are working with weekly returns then we multiply the average by 52 or if monthly then by 12.
Log Return is one of three methods for calculating return and it assumes returns are compounded continuously rather than across sub-periods.
The initial price Pinitial and the current price Pcurrent or the price at the end date of the period over which you wish to. If you look at wikipedia you realize this would be equivalent to saying log normal distributions of ratios todays priceyesterdays price I hope that helps Cathy. How can this be done in C in a efficient way. An example Lets say that you want to calculate the return of the SP 500 index during the month of October 2015.
