Explanation:
Lognormal distributions are skewed to the right because they are bound by zero to the left. For this reason, they are often used to model stock prices since the prices cannot take negative values.
Ultimate access to all questions.
Which of the following statements is the most accurate? Lognormal Distributions are:
A
Skewed to the left and rarely used to model asset prices
B
Skewed to the left and often used to model asset prices
C
Skewed to the right and often used to model asset prices
D
Skewed to the right and rarely used to model asset prices
No comments yet.