Skip Navigation Links.
🏠Home
Collapse 💻Apps💻Apps
🍵HTML Editor
🍵Unicode Symbols
Collapse 📂Topics📂Topics
Collapse 📄Data Analysis Expressions ...📄Data Analysis Expressions ...
Collapse 📄Complete List of DAX Fun...📄Complete List of DAX Fun...
📄ABS...
📄ACCRINT...
📄ACCRINTM...
📄ACOS...
📄ACOSH...
📄ACOT...
📄ACOTH...
📄ADDCOLUMNS...
📄Using DAX to split colum...
Collapse 📄MS Office...📄MS Office...
📄MS Access...
Collapse 📄MS Excel...📄MS Excel...
Collapse 📄Ribbon...📄Ribbon...
Collapse 📄Home...📄Home...
📄Alignment...
📄Cells...
📄Clipboard...
📄Editing...
📄Font...
📄Number...
📄Styles...
Collapse 📄Insert...📄Insert...
📄Charts...
📄Illustrations...
📄Tables...
Collapse 📄Office Scripts...📄Office Scripts...
📄VBA to TypeScript: A S...
Collapse 📄Power BI...📄Power BI...
Collapse 📄Get Data...📄Get Data...
📄Get Data from Files...
📄View any visual as table...
Collapse 📄Power Query / M Language...📄Power Query / M Language...
📄Entering Data without Da...
📄Data Source Settings...
Collapse 📄Practice Datasets...📄Practice Datasets...
📄Kaggle Datasets...
Collapse 📄SQL Datasets...📄SQL Datasets...
📄Adventure Works (SQL S...
📄Star Bakery (MySQL Ser...
📄Star Corp (SQL Server)...
Collapse 📄Python...📄Python...
📄Fill missing values in M...
📄List of Machine Learning...
📄Python for MS Excel...
📄Seasonal Autoregressive ...
📄Working with Random Valu...
Collapse 📹Video Tutorials📹Video Tutorials
🎬Advanced Power BI Realtime...
🎬Real time Monitoring with ...
🎬Creating and Using Flow Ma...
🎬How to create terrain, add...
🎬Game Design Tutorial for B...
🎬Dashboard with Relational ...
🎬Power Pivot and Data Model...
🎬Selecting Project using Pr...
🎬Two Ways to Use Custom SQL...
🎬Diversity, Equity, and Inc...
🎬Complete Guide to Using Dr...
🎬Gantt Chart in Power BI: C...
🎬Monitoring Progress Using ...
🎬Creating a Dashboard of Sa...
🎬Indigeno Technologies - Pa...
🎬Creating and Publishing We...
🎬Make Your Data Grow: Tree ...
🎬Power BI: Adding Historica...
🎬We asked an AI to create a...
🎬Power BI: Staff Engagement...
🎬Using Unicode Symbols in E...
🎬Power BI: Timesheet Analys...
🎬Time Machine for Your Data...
🎬Azure Data Studio - Comple...
🎬Power BI: Creating a Stunn...
🎬Power BI: Project Payback,...
🎬Power BI: Complete Realtim...
🎬Power BI: DAX Query View f...
🎬Build Your Own Excel Toolb...
🎬Data Science Programming: ...
🎬Power BI: Manage and Track...
🎬MS Excel: Using Images in ...
🎬MS Excel: Complete Guide t...
🎬Power BI: Creating Dashboa...
🎬Power BI: Using Latest Pre...
🎬Power BI: Performing Compa...
🎬Power BI: Creating Dashboa...
🎬Python: Forecasting with S...
🎬Power BI: Creating a Dice ...
🎬MS Excel: Creating a Dynam...
🎬Power BI: Create stunningl...
🎬MS Excel: Data Visualizati...
🎬Power BI: Assets Managemen...
🎬Power BI: Using Copilot in...
🎬Power BI: How to Create a ...
🎬MS Excel: Complete Guide t...
🎬Power BI: Easily Pivoting ...
🎬Power BI: How to Create a ...
🎬MS Excel: Using Python Rea...
🎬MS Excel: Realtime/Live Da...
🎬Power BI: Creating Paginat...
🎬Power BI: Exploring PBI On...
🎬MS Excel: Mastering MS Exc...
🎬MS Excel: Performing Non-L...
🎬MS Excel: How to add lates...
🎬Power BI: Performing PESTL...
🎬Power BI: Creating an Exot...
🎬Python: Resizing and Conve...
🎬Power BI:The Clock - Episo...
🎬MS Power Point: The Clock ...
🎬Looker Studio: Setting up ...
🎬HTML: Complete Course for ...
🎬Power BI: Creating a Power...
🎬MS Excel: Best Way to Crea...
🎬Power BI: Setting up Repor...
🎬Power BI: Real-time Data R...
🎬MS Excel: Mastering Excel ...
🎬SQL: Creating Realtime Liv...
🎬SQL: SQL Server Reporting ...
🎬Power BI: Data Modeling an...
🎬MS Excel: Data Modeling an...
🎬Python: Mastering NumPy Li...
🎬Power BI: Automating Data ...
🎬Power BI: How to Build a P...
🎬Power BI: Displaying Realt...
🎬Power BI: Unlocking Insigh...
🎬Power BI: How to Create a ...
🎬Power BI: Comparing Variou...
🎬Power BI: Animate Your Vis...
🎬MS Excel: Using Formulas l...
🎬Power BI: Using Folders as...
🎬Power BI: Using Folders as...
🎬Python: Uploading Files Di...
🎬Power BI: Creating Stunnin...
🎬Power BI: Integrating Pict...
🎬Power BI: Crafting Dynamic...
🎬Power BI: Dealing with Err...
🎬Power BI: Creating Dynamic...
🎬MS Excel: Calculating, Com...
🎬Power BI: Exploratory Data...
🎬Power BI: Create an Intera...
🎬Python: Creating Polynomia...
🎬Looker Studio: Creating Dy...
🎬Google Charts: Using Googl...
🎬Looker Studio: Understandi...
🎬Python: Mastering Data Vis...
🎬Power BI: Realtime Simulat...
🎬Power BI: Connecting to an...
🎬Python: Performing basic S...
🎬MS Excel: Simplifying Comp...
🎬Power BI: How to Create Hi...
🎬MS Excel: How to Use Calcu...
🎬Power BI: Using Small Mult...
🎬Power BI: Performing Finan...
🎬Power BI: Displaying SQL D...
🎬Power BI: Displaying Audit...
🎬Power BI: Loading Data int...
🎬Power BI: Using SQL Query ...
🎬Power BI: Visualizing Basi...
🎬MS Excel: Create a Smart, ...
🎬Power BI: Realtime Plant S...
🎬Power BI: Analyzing Season...
🎬Power BI: Creating your fi...
🎬Power BI: Creating Paginat...
🎬Power BI: Creating a Key P...
🎬Power BI: Creating Data So...
🎬Power BI: Setting up Power...
🎬Creating and Setting up a ...
🎬Power BI: Creating Pareto ...
🎬Power BI: Realtime Call Ce...
🎬Power BI: Creating a Proje...
🎬Power BI: Displaying Live ...
🎬Power BI: Using Conditiona...
🎬MS Excel: How to Create Re...
🎬Power BI: Realtime Sales S...
🎬Power BI: Displaying Realt...
🎬MS Excel: Using Excel Slic...
🎬Tableau: Tutorial for Begi...
🎬Power BI: How to Use Bookm...
🎬MS Access: How to Create R...
🎬MS Excel: Using What If An...
🎬Power BI: Create a YouTube...
🎬Power BI: Correlation Anal...
🎬Power BI: Analyzing Murder...
🎬Power BI: Manage and Monit...
🎬MS Excel: Creating an Anim...
🎬MS Excel: Creating 3D Maps...
🎬Power BI: Analyzing Wareho...
🎬MS Excel: How to add seria...
🎬Power BI: Mastering Market...
🎬MS Excel: What lies beneat...
🎬MS Excel/Power BI: Unpivot...
🎬Power BI: Exploring Defaul...
🎬MS Excel: Using the Break-...
🎬MS Excel: Predicting Sales...
🎬Power BI: Market Basket An...
🎬MS Excel: Creating a Bell ...
🎬Power BI: Creating a Dimen...
🎬Looker Studio: Creating a ...
🎬R: Creating Your First Pie...
🎬MS Excel: Conditional Form...
🎬Power BI: Analyzing human ...
🎬Python: Unleashing the Pow...
🎬Excel: Mapping, Grouping a...
🎬Power BI: Forecasting Data...
🎬Power BI: Grouping Data in...
🎬JavaScript: Using the if-e...
🎬Power BI: Connecting to th...
🎬JavaScript: Performing Mat...
🎬Power BI: Analyzing Bank L...
🎬MS Excel: Pivot... Pivot.....
🎬JavaScript: How to use onC...
🎬Power BI: Using Sankey Dia...
🎬Power BI: Multi Page Power...
🎬JavaScript: How to use onL...
🎬JavaScript: How to get the...
🎬Power BI: Crimes in Los An...
🎬Power BI: Crimes in Los An...
🎬Excel: Using the Fill Feat...
🎬Power BI: Drill-through Re...
🎬Power BI: Using DAX (Data ...
🎬Power BI: Using Smart Narr...
🎬Power BI: Bank Failure in ...
🎬Python: Predicting absente...
🎬Power BI: Dashboards with ...
🎬Power BI: Team and Product...
🎬Excel: Lookup Functions, V...
🎬Power BI: Artificial Intel...
🎬Power BI: Drill Down Repor...
🎬Python: Creating a GUI bas...
🎬Power BI: Visualizing Stoc...
🎬Python: Expected Returns (...
🎬Power BI: Decomposition Tr...
🎬Power BI: Sales and Profit...
🎬Python: Why you should not...
🎬Python: How to save, reloa...
🎬Power BI: Dimensional Mode...
🎬Python: How to classify da...
🎬Python: Machine Learning, ...
🎬Python: Web Scraping using...
🎬Animate: Classic Tween in ...
🎬Python: Support Vector Mac...
🎬Python: How to perform loo...
🎬Unity3d: How to create ter...
🎬Python: How to create and ...
🎬Python: How to work with a...
🎬Python: How to work with p...
🎬Python: How to work with S...
🎬SQL: How to create databas...
🎬Python: Data Scraping from...
🎬MS Excel: Pivot Tables, Pi...
🎬Python: How to use World B...
🎬MS Excel: How to use COUPD...
🎬Power BI: How to install P...
🎬Python: Easiest way to dow...
🎬MS Excel: How to use AMORD...
🎬MS Excel: How to use ACCRI...
🎬Python: Calculating varian...
🎬MS Excel: How to calculate...
🎬Python: How to calculate a...
🎬MS Excel: How to calculate...
🎬Python: How to calculate a...
🎬MS Excel: How to calculate...
🎬Python: How to calculate a...
🎬MS Excel: How to calculate...

🎬MS Excel: Calculating, Comparing, and Visualizing Simple Returns and Log Returns

Hey there, welcome to my MS Excel tutorial! In today`s video, we`re diving into the world of investment simulations using Microsoft Excel. I`ll walk you through the process of comparing simple returns with log returns, helping you gain a better understanding of these concepts.

First off, log returns might sound a bit complex, but they`re essentially the logarithmic difference between the price of an asset at two different times. It`s a powerful tool in the world of finance.

Let`s get started, shall we?

We`ll kick things off by opening a blank Microsoft Excel workbook. In the first column, I`ve named it "day," representing the number of days you`ve invested in a security. The next column will house the investment values for each day. For instance, on day one, we`ll start with an investment of $100.

Now, let`s say we encounter a 10% loss on day one. That translates to a negative return on our $100 investment. As we move forward, you`ll notice that our returns start improving by 0.1% each day.

To keep things organized, I`ve formatted the return column as a percentage with two decimal places. As we progress, we calculate the investment value for each day by factoring in the returns. We`ve also plotted these returns on a line chart for better visualization.

Speaking of which, we`ve created a line chart using the simple return values. These are the returns we`ve calculated so far. Now, let`s talk about the log return. In Excel, we use the natural logarithm function (LN) to calculate log returns. We add one to the return value and format this column as a percentage too.

With the log return values ready, we add them to our line chart, comparing them with the simple return values. It`s interesting to note that as we approach a 0% return, both log return and simple return align closely. However, as returns increase, so does the disparity between the two.

This brings us to a useful insight: for returns under 10%, it`s recommended to use log returns. We`ve highlighted these return columns in red for emphasis.

Now, let`s explore accumulated returns. We create a new column, applying a formula to calculate these returns based on simple returns. Additionally, we do the same for accumulated returns using log returns. We format these columns and visualize them with distinct colors for clarity.

As we move forward, you`ll notice that the accumulated returns using both methods are remarkably similar. In fact, the accumulated return on the last day remains the same, whether calculated using simple returns or log returns. This holds true when comparing the initial and final investment values.

And that`s a wrap for today`s tutorial! I hope you enjoyed delving into investment simulations and comparing simple and log returns using MS Excel. If you found this tutorial helpful, don`t forget to give it a thumbs up and subscribe for more informative videos. Thanks for watching, and until next time!

Official Page: https://virtual-school.org/tutorial?v=6vh6PgWj62c
Excel File: https://docs.google.com/spreadsheets/d/1hvfa6KRCJOdP2pStUX_mzn64ELs2MNvF/edit?usp=sharing&ouid=110287700425339553017&rtpof=true&sd=true

#ExcelTutorial #InvestmentSimulation #LogReturns #SimpleReturns #FinancialAnalysis #MicrosoftExcel #DataVisualization #FinanceBasics #ExcelFormulas #TutorialVideo #DataAnalysis #FinancialEducation #ExcelCharts #InvestmentStrategy #FinanceTips #SpreadsheetMagic #Investing101 #ExcelSkills #ExcelCharts

Chapters:
00:36 - Comparing Simple Return and Log Return using Sequential Returns from -10% to +10%
06:10 - Comparing Simple Return and Log Return using Realistic Investment Scenario