Yes, you definitely can do so. To illustrate, Let's assume the price time series (i.e. textrm{P_{t}}) are stored in A1:A300 range.
To compute logarithmic price
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- In Excel, in cell B1, type +LN(A1:A300) and hit return. This will compute the log of first data cell.
- select cell B1:B300, hit F2 to edit the formula, and ctrl+Alt+Enter together. This will populate the B1:B300 and format the fomula as {=LOG(
1:
300)}
To compute logarithmic returns
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- In Excel, in cell B1, type +DIFF(LN(
1:
300),1,1) and hit return. This will compute the log price and difference it next (i.e. log return).
- select cell B1:B300, hit F2 to edit the formula, and ctrl+Alt+Enter together. This will populate the B1:B300 and format the fomula as {=DIFF(LN(
1:
300),1,1)}
To compute the ACF(k=3) of a logarithmic return directly
- In Excel, in cell B1, type +ACF(DIFF(LN(
1:
300),1,1),1,3) and hit return. This will compute the log return time series and the ACF on the derived series.
- select cell B1:B300, hit F2 to edit the formula, and ctrl+Alt+Enter together. This will populate the B1:B300 and format the fomula as {=ACF(DIFF(LN(
1:
300),1,1),1,3)}
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