Logarithmic values are used in finance

the verdict

SUPPORTED

the evidence backs this

Recorded sources

3 sources for · 0 against

Counts group repeated records of the same source within each side. They do not measure evidence strength or source independence.

Logarithmic values, such as log returns and log prices, are standard tools used extensively in financial modeling, asset pricing, and risk management.

The analysis

The claim that logarithmic values are used in finance is well supported by foundational and modern financial literature, where log returns and log prices are standard constructs for analyzing asset dynamics and risk.

Evidence for · 3

Theory of Financial Risk and Derivative Pricing: From Statistical Physics to Risk Management

Recorded source metadata

W. Breymann. Theory of Financial Risk and Derivative Pricing: From Statistical Physics to Risk Management. 2006. https://doi.org/10.1198/jasa.2006.s104

Ruppert discusses the random walk model for log prices based on continuously compounded returns as a fundamental object in finance.

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More for · 2

A data-driven framework for consistent financial valuation and risk measurement

Recorded source metadata

Zhenyu Cui, J. Kirkby, D. Nguyen. A data-driven framework for consistent financial valuation and risk measurement. 2021. https://doi.org/10.1016/j.ejor.2020.07.011

This paper utilizes Fourier techniques on the log-returns process of asset prices to evaluate financial valuation and risk.

Source citation format

Revisiting the excess volatility puzzle through the lens of the Chiarella model.

Recorded source metadata

Kurth JG, Majewski AA, Bouchaud JP. Revisiting the excess volatility puzzle through the lens of the Chiarella model.. 2026. https://doi.org/10.1371/journal.pone.0340409

The Chiarella model examines mispricings determined through log-differences between market price and value in financial markets.

Source citation format

The paper trail · every fact has a biography

first checked01 Aug 2026

judged → SUPPORTED · 8301 Aug 2026

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