The below three graphs show probability density functions (PDF) of three different random variables Red,...
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The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price of a stock in one year. P1 is a random variable. Let PO=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency 06 Red 0.5 0.4 0.3 Blue Green 0.2 0.1 variable 3 -2 0 2 -1 1 Which of the below statements is NOT correct? a. Red is a stock's net discrete return (NDR), with a minimum value of negative one. b. Blue is a stock's log gross discrete return (LGDR), with a minimum value of zero. OC. Red is log-normally distributed, and the mean is higher than the median. O d. Green is normally distributed with the same mean and median. O e. Blue is a stock's future price (P1), with a minimum value of zero. The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price of a stock in one year. P1 is a random variable. Let PO=1, so the share price now is $1. This one dollar is a constant, it is not a variable. frequency 06 Red 0.5 0.4 0.3 Blue Green 0.2 0.1 variable 3 -2 0 2 -1 1 Which of the below statements is NOT correct? a. Red is a stock's net discrete return (NDR), with a minimum value of negative one. b. Blue is a stock's log gross discrete return (LGDR), with a minimum value of zero. OC. Red is log-normally distributed, and the mean is higher than the median. O d. Green is normally distributed with the same mean and median. O e. Blue is a stock's future price (P1), with a minimum value of zero
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