Natural logarithm
logarithm to the base e (approximately 2.7183).
Normalizing method ...
Natural logarithm Â- Exponential function
Applications in: compound interest Â- Euler's identity & Euler's formula Â- half-lives & exponential growth/decay ...
e - Is the base of natural logarithms or 2.71828.
EAFE or MSCI EAFE - Refers to Morgan Stanley's Europe, Australasia, Far East index. It reflects a widely followed list of stocks from 20 countries.
where log denotes a natural logarithm. However, simple returns are sometimes used. This is especially true in the context of portfolio theory.
A variable has a lognormal distribution if the natural logarithm of the variable is normally distributed. The assumption about the process followed by assets is that they follow a geometric Brownian motion with drift.
Similar financial terms
Natural logarithm
Logarithm to the base e (approximately 2.7183).
Coastal Barrier Resources System (CBRS)
Designed to save Federal funds, protect human lives, and conserve coastal natural resources.
A similar calculation can be done using a natural logarithm instead of a decimal logarithm, and without the factor of 10, resulting in nepers instead of decibels:
Voltage gain ...
Used in the context of general equities. Customer buyer or seller, versus a principal or profile interest. Legitimate, real.
Natural logarithm
Logarithm to the base e (approximately 2.7183).
Near money ...
The choice of the threshold and the measure of the exchange rate movements used (the change in the natural logarithm of the nominal bilateral dollar exchange rate multiplied by 100) are arbitrary and there have been used in literature variants of ...
Euler's constant: May refer to either the natural logarithm base e, approximately 2.71828, or to the Euler-Mascheroni (sp) constant, which is approximately .57721566.
Contexts: mathematics ...
r = risk-free interest rate (usually the money market rate for a maturity equal to the option's maturity.)
T = time to option's maturity, in years
ln = natural logarithm function ...
Lognormal Distribution
The standard statistical model for the expected distribution of asset price movements. More technically, it assumes that the natural logarithms of relative price movements are normally distributed.
An interesting note from mathematics is that the formula for calculating continuously compounded interest, namely : , is the same as the formula for calculating e, an important mathematical constant and the base of the natural logarithm.
 See also: Banks, Saving, Values, Net present value, Probability distribution
  
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