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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 0.3 Blue Green 0.2 0.1 -2 -1 0 1 2 variable 3 Which of the below statements is NOT correct? a. Green is the log gross discrete return (LGDR). b. Green is a stock's continuously compounded return. c. Red is a stock's net discrete return (NDR), with a minimum value of negative one. d. Blue is log-normally distributed, and the median is higher than the mean. 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 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 0.3 Blue Green 0.2 0.1 -2 -1 0 1 2 variable 3 Which of the below statements is NOT correct? a. Green is the log gross discrete return (LGDR). b. Green is a stock's continuously compounded return. c. Red is a stock's net discrete return (NDR), with a minimum value of negative one. d. Blue is log-normally distributed, and the median is higher than the mean. e. Blue is a stock's future price (P1), with a minimum value of zero
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