CFA Practice Question

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, σ2)

User Contributed Comments 1

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