# Exponential weighting of returns

I am looking for a procedure to compute an exponential weighting of returns given a half life parameter.

I ran accross a wikipedia article, can I take it unchanged an assume N(t) is the return at time t ?

• I don't think of return as having an exponential half-life. But if you mean return projections then we're in business. This would be more sophisticated than the rules of thumb I model with, but we're trying to capture similar concepts. – Nathan S. Mar 8 '15 at 22:38
• Please rephrase your title as a question. – SRKX Mar 10 '15 at 7:54

The link that you provide points to exponential decay. We had this in school when radio-active material got less and less. I would not just replace $N(t)$ in the wikipedia article but rather read about statistics e.g. using Hyndman's ressources (I know I cite him a lot ...).