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**CFA Practice Question**

A lognormal distribution is characterized by which of the following?

A. It is bounded by - ∞ at the lower end.

B. Natural log of a random variable is distributed normally.

C. It is bounded by 0 at the upper end and - ∞ at the lower end.

**Explanation:**By definition, a random variable, X, is lognormally distributed if ln(X) ∼ N(μ, σ

^{2})

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**User Contributed Comments**
1

User |
Comment |
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KosyoAr |
Also, lognormal is bounded by 0 on the left side |