A. Describe two important characteristics of the lognormal distribution. B. Compared with the normal distribution, why is
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B. Compared with the normal distribution, why is the lognormal distribution a more reasonable model for the distribution of asset prices?
C. What are the two parameters of a lognormal distribution?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
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