Which of the Following Is Not a Characteristic of the Lognormal

question 3

Multiple Choice

Which of the following is not a characteristic of the lognormal distribution?

• A)Some value is the most likely
• B)It is negatively skewed (above the mean more likely)
• C)Values cannot fall below zero
• D)Extreme values (high end only)are possible,but rare
• E)All of the above are characteristic of the lognormal distribution

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to increase the number of shares outstanding while maintaining the same total market value.

Market Value

The existing cost for buying or selling an asset or service in the open market.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity without changing the shareholders' equity.

Par Value

The nominal or face value of a stock or bond as assigned by the issuing company, which may bear no relation to its market value.