CFA Level I. Module 10 3 Lognormal Distribution, Simulations

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  • Опубликовано: 6 фев 2019
  • CFA Level I. Module 10 3 Lognormal Distribution, Simulations

Комментарии • 4

  • @RP-ml5hs
    @RP-ml5hs 2 года назад +11

    lognormal at 05:52

  • @samuelcook7588
    @samuelcook7588 3 года назад

    THANKS

  • @gatsbyliu1084
    @gatsbyliu1084 2 года назад +1

    This is very useful, but how do we know if the stock follows the pattern lognormally?

    • @lemahtab
      @lemahtab Год назад +4

      The assumption is that the stock returns are normally distributed, and because the future stock price is a log function of return, given by log(St/S0), the stock price variable has a lognormal distribution. Do note that even if the returns are not normally distributed, their sum/ mean will be normally distributed and so the stock price always has a lognormal distribution.