The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price ofaa 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 26 Red 0.5 0.4 0.3 Blue Green, 0.2 0.1 variable -2 3 Which of the below statements is NOT correct? Oa Blue is a stock's future price (P1), with a minimum value of zero. Ob. Red is a stock's net discrete return (NDR), with a minimum value of negative one. Oc. Blue is a stock's log gross discrete return (LODR), with a minimum value of zero. od. Green is normally distributed with the same mean and median. O e. Red is log-normally distributed, and the mean is higher than the median. 2.
The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P1 be the unknown price ofaa 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 26 Red 0.5 0.4 0.3 Blue Green, 0.2 0.1 variable -2 3 Which of the below statements is NOT correct? Oa Blue is a stock's future price (P1), with a minimum value of zero. Ob. Red is a stock's net discrete return (NDR), with a minimum value of negative one. Oc. Blue is a stock's log gross discrete return (LODR), with a minimum value of zero. od. Green is normally distributed with the same mean and median. O e. Red is log-normally distributed, and the mean is higher than the median. 2.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:The below three graphs show probability density functions (PDF) of three different random varlables Red, Green and Blue. Let P1 be the unknown price ofaac
one year, P1 is a random varlable. Let PO-1, so the share price now is $1. This one dollar is a constant, It is not a variable.
frequency
2,6
Red/ 0.9
0.4
0.3
Blue
Green,
0.2
0.1
-2
variable
3
Which of the below statements is NOT correct?
Oa Blue is a stock's future price (P1), with a minimum value of zero.
O b. Red is a stock's net discrete return (NDR), with a minimum value of negative one.
Oc. Blue is a stock's log gross discrete return (LGDR), with a minimum value of zero.
O d. Green is normally distributed with the same mean and median.
O e. Red is log-normally distributed, and the mean is higher than the median.
2.
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