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Model Perspective
Model Perspective
Apr 30, 2025 · Fundamentals

Why Log Returns Matter: Unlocking Simpler, Additive Financial Analysis

This article explains the concept of log returns, their mathematical advantages over simple returns, and how they simplify financial modeling, risk management, and option pricing in economics and finance.

economicsfinancial analysislog returns
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Why Log Returns Matter: Unlocking Simpler, Additive Financial Analysis