#### danielfang

##### New Member

It states that the logarithmic return is frequently used when calculating returns, and monthly return can be calculated by simply summing the daily returns up.

There are some typos in the article I think, but let's look at the statement itself. When we are holding equity such as the Apple stock used as an example in the article, I suppose the return should be holding period return since there is no interest generated, am I right? Why a continuously compounded return can be applied here?

In addition, is the below reasoning correct? It links the two equations together to get the logarithmic return, but the two "r"s actually stand for different meanings. (see the remark I put)

I am applying to the MFE programs this year, and I am preparing myself by learning on QuantConnect. So I am not pretty sure whether this is practically used in the industry, and I posting here to seek clarification from you. Thanks.