The lognormal distribution is a more accurate model for the distribution of stock prices than the normal

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The lognormal distribution is a more accurate model for the distribution of stock

prices than the normal distribution because stock prices are:

A. symmetrical.

B. unbounded.

C. non-negative.

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

1st Edition

Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:29 AM

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The lognormal distribution is a more accurate model for the distribution of stock prices than the normal

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C is correct A lognormal distribut...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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