I have seen people using Natural Log "log (p2/p1)", while calculating daily returns of stock/Index for long period data (15-20 years), instead of using '(p2 - p1)/p1'. Could not know very good reason. Is it more accurate to use Natural Log ? Can you make a Video on this in detail for benefit of all of us. Rgds.
I have seen people using Natural Log "log (p2/p1)", while calculating daily returns of stock/Index for long period data (15-20 years), instead of using '(p2 - p1)/p1'. Could not know very good reason.
Is it more accurate to use Natural Log ?
Can you make a Video on this in detail for benefit of all of us.
Rgds.