Quants - first differencing

CFA Level II
#1

Hi, for first differencing are we just taking the change in say x variable and come up with y i.e. y=xt-xt-1 or do we need to take ln somewhere? Thanks

#2

Any replies from the quant guru? :slight_smile:

#3

No ln’s unless that’s part of your model

#4

Thanks Joey!!