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The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price of
The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price of a stock in one year. P1 is a random variable. Let P0=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency Q6 Red/ 0.5 0.4 0.3 Blue Green 0.2 0.1 variable 3 -2 -1 0 1 2 Which of the below statements is NOT correct? a. Red is a stock's net discrete return (NDR), with a minimum value of negative one. O b. Blue is a stock's log gross discrete return (LGDR), with a minimum value of zero. O c. Red is log-normally distributed, and the mean is higher than the median. O d. Green is normally distributed with the same mean and median. O e. Blue is a stock's future price (P1), with a minimum value of zero. The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price of a stock in one year. P1 is a random variable. Let P0=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency Q6 Red/ 0.5 0.4 0.3 Blue Green 0.2 0.1 variable 3 -2 -1 0 1 2 Which of the below statements is NOT correct? a. Red is a stock's net discrete return (NDR), with a minimum value of negative one. O b. Blue is a stock's log gross discrete return (LGDR), with a minimum value of zero. O c. Red is log-normally distributed, and the mean is higher than the median. O d. Green is normally distributed with the same mean and median. O e. Blue is a stock's future price (P1), with a minimum value of zero
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