|
e
The base of natural logarithms. The value e is equal to 2.71828. e is also equal to the limit of the function [1 + (1/n)]n as n approaches infinity. e is used to convert continuous returns into periodic returns. For example, if e is raised to the power, 0.0953, it equals 1.10 which is the terminal value of 1 compounded continuously at this rate. Thus the periodic return equals: econtinuous return - 1. See Logarithm, Natural Logarithm.
|
