<Dd> t (\ displaystyle t) = length of time period </Dd> <P> For example, if a stock is priced at 3.570 USD per share at the close on one day, and at 3.575 USD per share at the close the next day, then the logarithmic return is: ln (3.575 / 3.570) = 0.0014, or 0.14% . </P> <P> Under an assumption of reinvestment, the relationship between a logarithmic return R (\ displaystyle R) and a logarithmic rate of return r (\ displaystyle r) over a period of time of length t (\ displaystyle t) is: </P> <Dl> <Dd> R = r t (\ displaystyle R = rt) </Dd> </Dl>

The right to trade an investment over a certain period of time is called a(n)