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Basic Question 7 of 7
Compared to a normal distribution, a lognormal distribution is least likely to be ______.
B. skewed to the right
C. useful in describing the distribution of stock prices
A. skewed to the left
B. skewed to the right
C. useful in describing the distribution of stock prices
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Edward Liu
Learning Outcome Statements
explain the relationship between normal and lognormal distributions and why the lognormal distribution is used to model asset prices when using continuously compounded asset returns
CFA® 2024 Level I Curriculum, Volume 1, Module 6.