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

Sketch the graph f ( x ) = - x5 + (5/2 )x4 + (40/3) x3 + 5, Sketch the grap...

Sketch the graph of the below function. f ( x ) = - x 5 + (5/2 )x 4 + (40/3) x 3 + 5 Solution : Whenever we sketch a graph it's good to have a few points on the graph to

Exercise of concrete operational stage, Which of the following statements d...

Which of the following statements do you think are true about children? Indicate with 'T' for true and for false. Give reasons for your choice. a) Most primary school children a

Proof of limit comparison test - sequences and series, Proof of Limit Compa...

Proof of Limit Comparison Test As 0  Now, as   we know that for large enough n the quotient a n /b n should be close to c and thus there must be a positive integer

Evaluate the mean of temperatures, Evaluate the mean of temperatures: ...

Evaluate the mean of temperatures: Example: Given the subsequent temperature readings, 573, 573, 574, 574, 574, 574, 575, 575, 575, 575, 575, 576, 576, 576, 578 So

Harmonic progression (h.p.), Three quantities a, b and c are said to ...

Three quantities a, b and c are said to be in harmonic progression if, In this case we observe that we have to consider three terms in o

Determinants, can anyone solve this assigment: D=lsqrt(3x-5) sqrt(2x)l ...

can anyone solve this assigment: D=lsqrt(3x-5) sqrt(2x)l =3 l -1 1 l

Determine the area of the matting, A circular print is being matted in a sq...

A circular print is being matted in a square frame. If the frame is 18 in by 18 in, and the radius of the print is 7 in, what is the area of the matting? (π = 3.14) a. 477.86 in

Multiplication of two matrices, Need assignment help, Explain Multiplicatio...

Need assignment help, Explain Multiplication of two Matrices.

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