### CFA Practice Question

There are 985 practice questions for this topic.

### CFA Practice Question

Which of the following statements is (are) incorrect?

I. The lognormal distribution is always related to the normal distribution.
II. If the logarithm of base ten of a random variable follows a normal distribution, then that random variable follows a lognormal distribution.
III. The lognormal distribution has a long right tail.
IV. The lognormal distribution is always bounded below by zero.
Correct Answer: II only

If the logarithm of base ten of a random variable follows a normal distribution, then that random variable follows a lognormal distribution. The affirmation is incorrect. If the natural log of a random variable follows a normal distribution, then that random variable follows a lognormal distribution.

### User Contributed Comments4

User Comment
danlan The base should be e and not 10.
dcfa @danlan,
I am not sure - I think the point is that the base is not important.
cleopatraliao the base is important--natural logarithm is e base:)
ashish100 damn i need to go hard at the gym after June 3rd.
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