The standard statistical model for the expected distribution of asset price movements based on the assumption that the natural logarithms of relative price movements are normally distributed.
A distribution of frequencies that is symmetric (i.e. bell shaped) when plotted on a logarithmic abscissa.
A statistical distribution that is often applied to the movement of stock prices. It is a convenient and logical distribution because it implies that stock prices can theoretically rise forever but cannot fall below zero, a fact which is of course, true.
A failure distribution similar to the Normal distribution except that the logarithm of the values of random variables, rather than the values themselves, are assumed to be normally distributed. Thus all values are positive and the distribution is skewed to the left.
A statistical distribution often applied to stock prices. It implies that stock prices can rise infinitely but can not fall below zero.
A random variable is lognormal if its logarithm is normal.
distribution where the logarithm of the variable follows a normal distribution. Lognormal distributions are used to describe returns calculated over periods of a year or more.
The standard statistical model for the expected distribution of asset price movements. More technically, it assumes that the natural logarithms of relative price movements are normally distributed.
A type of probability distribution.
