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

Satistics, I have about 6 Statistics questions, can anyone help me?

I have about 6 Statistics questions, can anyone help me?

Trigonometry, sin^2alpha *sec^2beta +tan^2 beta *cos^2alpha=sin^2alpha+tan^...

sin^2alpha *sec^2beta +tan^2 beta *cos^2alpha=sin^2alpha+tan^2 beta

Concurrent deviation method, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE

What is approximation, approximate value is the precise or the accurate val...

approximate value is the precise or the accurate value which is measured  to the actual value.., approximation is how close the measured value is to the actual value , for example

What is perfect squares, What is Perfect Squares ? Any number that can ...

What is Perfect Squares ? Any number that can be written as an integer to the power of two is called a perfect square. For example, 4 can be written as 2 2 4 is a "perfect sq

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