Logarithmic rate of return
Description
In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor receives from the investment. Rate of return is a profit on an investment over a period of time.
The force of interest, or more generally the logarithmic or continuously compounded return is a function of time, which is the rate of change with time of the natural logarithm of the accumulation function.
Variables
rlog | Logarithmic rate of return (dimensionless) |
Vf | Final value, including dividends and interest (dimensionless) |
Vi | Initial value (dimensionless) |
t | Time length (period) (dimensionless) |