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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 PO=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency 0.6 Red/ 0.5 0.4 Blue 0.3 Green 0.2 0.1 -2 -1 0 1 2 variable 3 Which of the below statements is NOT correct? O a. Blue is a stock's gross discrete return (GDR), with a minimum value of zero. O b. Red is log-normally distributed, and the mean is higher than the median. O c. Red is a stock's log gross discrete return (LGDR), with a minimum value of negative one. O d. Blue is a stock's future price (P1), with a minimum value of zero. O e. Green is a stock's continuously compounded return. 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 PO=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency 0.6 Red/ 0.5 0.4 Blue 0.3 Green 0.2 0.1 -2 -1 0 1 2 variable 3 Which of the below statements is NOT correct? O a. Blue is a stock's gross discrete return (GDR), with a minimum value of zero. O b. Red is log-normally distributed, and the mean is higher than the median. O c. Red is a stock's log gross discrete return (LGDR), with a minimum value of negative one. O d. Blue is a stock's future price (P1), with a minimum value of zero. O e. Green is a stock's continuously compounded return
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