Lognormal distribution, Mathematics

Assignment Help:

The Lognormal Distribution

If ln(X) is a normally distributed random variable, then X is said to be a lognormal variable.

If P1, P2, P3, ... are the prices of a scrip in periods 1, 2, 3, ..., some applications in finance require ln (P2/P1), ln (P3/P2),... to be normally distributed, that is, continuously compounded returns are required to be normal. This property is described as “Stock Prices are Lognormal”.

REMARK

The previous random variables arose out of natural experiments. The following distributions are derived distributions. That is, it is a function of other distributions. We require the following two distributions in Testing of Hypothesis. and our presentation will be restricted by our requirements. 


Related Discussions:- Lognormal distribution

Evaluate the measure of the larger angle, Two angles are complementary. The...

Two angles are complementary. The calculate of one angle is four times the measure of the other. Evaluate the measure of the larger angle. a. 36° b. 72° c. 144° d. 18°

PR Plan for Bloomington Bombers softball team, I need to come up with a PR ...

I need to come up with a PR plan for a fictitious women''s softball team. How much would something like that cost?

Marketing research, In pharmaceutical product research doctors visit the pl...

In pharmaceutical product research doctors visit the place to learn what

Euler equations, Euler Equations - Series Solutions to Differential Equ...

Euler Equations - Series Solutions to Differential Equations In this section we require to look for solutions to, ax 2 y′′ + bxy′ + cy = 0 around x0  = 0. These ki

Shares and dividends, at what price a 6.25%rs 100 share be quoted when the ...

at what price a 6.25%rs 100 share be quoted when the money is worth 5%

Formula to computing how much lumber to buy, Audrey is creating a increased...

Audrey is creating a increased flowerbed which is 4.5 ft by 4.5 ft. She requires computing how much lumber to buy. If she requires knowing the distance around the flowerbed, which

Application of statistics-forecasting, Forecasting Statistics is very ...

Forecasting Statistics is very significant for business managers while predicting the future of a business for illustration if a given business situation includes a independen

form a pythagorean triple, A Pythagorean triple is a set of positive integ...

A Pythagorean triple is a set of positive integers (a,b,c) like  a2 + b2 = c2.  Write a function "ispythag" that will receive 3 positive integers (a, b, c in that order) and will r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd