单选题
An analyst stated that lognormal distributions are suitable for describing distributions of asset prices and that normal distributions are suitable for describing asset returns. Is the analyst's statement correct with respect to: Lognormal distributions? Normal distributions? A. No No
B. No Yes
C. Yes Yes
【正确答案】
C
【答案解析】
The lognormal distribution is generated by the function ex, where x is normally distributed. Since the natural logarithm, In, of eX is x, the logarithms of lognormally distributed random variables are normally distributed, thus the name. From the figure we can see that: The lognormal distribution is skewed to the right. The lognormal distribution is bounded from below by zero so that it is useful for modeling asset prices which never take negative values.
The lognormal distribution is generated by the function ex, where x is normally distributed. Since the natural logarithm, In, of eX is x, the logarithms of lognormally distributed random variables are normally distributed, thus the name. From the figure we can see that: The lognormal distribution is skewed to the right. The lognormal distribution is bounded from below by zero so that it is useful for modeling asset prices which never take negative values.