I'm doing some analysis on log returns and I notice that returns can exceed 100%. For example, if a security's close price \$1 today and \$10 yesterday, the log return is $ln(1) - ln(10) = -230\%$! Under arithmetic computation, returns for a long position cannot exceed 100% (i.e. the initial investment). So how would i interpret a log return of -230%?
Thanks,
Alex