Natural Log

CFA Level II Quant
#1

I don’t have much in the way of a stats background prior to studying for the CFA, so I’m a little confused about what a natural log even is. Does anyone have a cliff notes version of what a natural log is and why we use it? Thanks in advance.

#2

#LogRules

#3

ln(x) is the exponent to which you raise the number e ( ≈ 2.718281828) to get x.

For example, eln(2) = 2; ln(2) ≈ 0.693147, so e0.693147 ≈ 2.

e2 ≈ 7.389056, so ln(7.389056) ≈ 2.