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joppy
1844 days ago
Is it normal to deal with returns over time as log-returns log(R) rather than simple returns (R - 1) for this reason? The average log return does the right thing.
1 comments
SomewhatLikely
1835 days ago
Right, I used to use the geometric mean when dabbling in this area in my teens which is mathematically equivalent to averaging the log returns.
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