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Compute the Mean and Variance of a Lognormal Variable Y

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Essay

Compute the mean and variance of a lognormal variable Y if the mean and the variance of the underlying normal variable are Compute the mean and variance of a lognormal variable Y if the mean and the variance of the underlying normal variable are   . .


Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than cash.

Par Value

The face value of a bond or the stated value of a stock; does not necessarily reflect market value.

Capital Lease

A lease agreement that is recorded as an asset on the lessee's balance sheet because it effectively transfers the risks and benefits of ownership from the lessor to the lessee.

Lease As Purchase

An agreement where the lessee has the option or obligation to purchase the leased asset at the end of the lease term.

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