Consider a risk that is numerically the product of two factors, which are independent of each other.
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Consider a risk that is numerically the product of two factors, which are independent of each other. If each factor can be represented by a lognormal distribution with logarithmic standard deviation σ, show that the resultant risk distribution is also lognormal and find the standard deviation.
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Related Book For
Fundamentals Of Risk Analysis And Risk Management
ISBN: 9781566701303
1st Edition
Authors: Vlasta Molak
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