Logarithmic compounded return ( force of interest)


In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor receives from the investment. Rate of return is a profit on an investment over a period of time.
The force of interest, or more generally the logarithmic or continuously compounded return is a function of time, which is the rate of change with time of the natural logarithm of the accumulation function.

Related formulas


rlog Logarithmic return (dimensionless)
VfFinal value, including dividends and interest (dimensionless)
ViInitial value (dimensionless)