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Welcome to this video lesson on log prices. After completing this, you will be able to describe and calculate log prices. Let us look at the price graph of Tesla over the years. Which years do you think would have been the best for investing in Tesla? We will come back to the answer later. Consider a hypothetical stock whose prices for the past 5 days is shown on screen. A few observations from this table are as follows. On 23 and 26 June, the price doubles i.e. 100% returns. On June 24, the price increases by 50% when it goes from $200 to $300. On June 25, the price decreases by 33% when it goes from $300 to $200. The plot of the prices looks like this. By looking at this graph, can you easily infer what you inferred from the data table before? Probably not. The price doubled on June 23 and then increased by half on June 24. This is difficult to distinguish in the graph as the slope of the line is the same. Also, while the price doubled on both June 23 and June 26, the line is steepe