Finance
Calculate a log return
=LN(B3/B2)How it works in Excel
- B3/B2 compares this price to the last one.
- LN turns that into a log return.
- Log returns can be added across time, which simple returns can't.
The idea in general
It measures growth as if it happened continuously.
What I assumed
- The earlier price is in B2 and the later price is in B3.
Check the result on your own data before relying on it.