Briefly explain why it is convenient to use log returns in practice Remember that they are defined as LR log ( x 1) Where Xn 1 and X are the prices at times n 1 and n Also, discuss the advantages and disadvantages of using log returns vs rates of return Briefly explain why it is convenient to use ...

Using logreturns in practice has several conveniences Firstly logreturns allow for additive calculations instead of multiplicative calculations which ...

Briefly explain why it is convenient to use log-returns in practice. Remember that they are defined...

Fantastic news! We've Found the answer you've been seeking!

Question:

Related Book For answer-question

Applied Regression Analysis and Other Multivariable Methods

ISBN: 978-1285051086

5th edition

Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg

See More Books

Posted Date: Jun 15, 2023 02:21 AM

See More Questions

In exercise 27.1 we extended our analysis of subsidized voluntary giving from 2 to N people. In the process, we simply assumed the government would set t to cover its costs and that individuals...
Consider the own- and cross-price elasticity data in the table below. CDs % change in price CDs Magazines Cappuccinos -0.25 0.06 0.01 -1.20 0.27 -0.85 % change in quantity Magazines-0.13 Cappuccinos...
Briefly explain why it is necessary to prepare the statement of income before preparing the statement of changes in shareholders equity.
You name the catastrophe, and JIT has been through it and survived. Toyota Motor Corporation has had its world-renowned JIT system tested by fire. The massive fire incinerated the main source of...
A point charge q is located at the centre O of a spherical uncharged conducting layer provided with a small orifice (Fig. 3.32). The inside and outside radii of the layer are equal to a and b...
Cavendish Experiment in the Cavendish balance apparatus shown in Fig. 12.4, suppose that m, = 1.10 kg, m2 = 25.0 kg, and the rod connecting the m, pairs is 30.0 cm long. If, in each pair, m, and m2...
The U.S. Census Bureau computed the proportion of U.S. residents who lived in each of four geographic regions in 2010. Then a simple random sample was drawn of 1000 people living in the United States...
Bills Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,550, and the book value prior to the repair was $6,500. In addition, the company spent $12,000 to...
1.The following information is supplied. YearBull ReturnsS&P/TSX Composite Returns 110%15% 20%-2% 3-5%-2% 415%10% 55%0% a.Calculate the average returns of Bull and the Composite. [2 marks]...
You are working on a free-form Packet Tracer challenge activity as seen in Figure 1, you have been given the London Railways network.' The purpose of this EMA question is to build upon each of the...
Imagine a floating-point system in which we can store binary numbers only of the form 1. b bb3 x 2E where b; is the ith digit after the decimal, E can be only 0, 1, and -1; as well as the number...
Your client Carole currently has a variable annuity with Vanguard with a balance of $600,000. She was just notified that they will no longer be offering these products. Carole is interested in moving...
Domino's is the largest pizza company in the world based on global retail sales, with more than 15,900 locations in over 85 markets around the world. Founded in 1960, our roots are in convenient...
Keyshawn Vonte, who has a 30 percent marginal tax rate, invested $68,500 in a bond that pays 6.0 percent annual interest. Required: a. Compute Vonte's annual net cash flow from this investment...
Nina went to the fish store and bought some guppies. She purchased 2 Flagtail guppies for $2.99 each, 6 Mosaic guppies for $3.49 each, and 4 Leopard guppies for $1.99 each. What was her total...
The Cutting Department of Arizona Manufacturing has the following production and cost data for July. Production Costs 1. Transferred out 12,000 units. Beginning work in process $ -0- 2. Started 1,500...
The issue of right and wrong has always been open to debate and scrutiny. In people's private lives, it is open to interpretation and is quite subjective. However, in the business world, there is no...
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
a.-d. Answer the same questions as in parts (a) through (d) in Problem 1 regarding an analysis of covariance designed to control for both AGE and QUET. (AGE = 53.250.) Use the results from Problem 9...
An advertising company evaluated three types of television ads for a new, low-cost, subcompact automobile: visual-appeal ads, budget-appeal ads, and feature-appeal ads. To control for age...
An experiment to evaluate the effects of certain variables on soil erosion was performed on 10-foot-square plots of sloped farmland subjected to 2 inches of artificial rain applied over a 20-minute...
In the 1136 Tenants case all of the following were factors in the case except a. Violation of federal criminal statutes. b. Due care. c. A clearly written engagement letter. d. Misunderstanding as to...
Read the following statements and indicate whether you agree or disagree with each one. Give your reasons for agreement or disagreement. Support your answers with references to applicable cases...
A colleague has read about the legal cases with which auditors have been involved in recent years. During a discussion, you consider it beneficial to summarize some highlights of auditors' legal...

Briefly explain why it is convenient to use log-returns in practice. Remember that they are defined...

Question:

Expert Answer:

Using logreturns in practice has several conveniences Firstly logreturns allow for additive calculations instead of multiplicative calculations which ... View the full answer

Applied Regression Analysis and Other Multivariable Methods

Students also viewed these finance questions