Add random numbers, get normal what occurs as multiply
When you add random numbers and get normal, what occurs when you multiply them?
Expert
In orders of logarithms of the random numbers, logarithms of random numbers are themselves random (assume that stay with logarithms of strictly positive numbers). Therefore if you add up many logarithms of random numbers you will find out a normal distribution. But, obviously, a sum of logarithms is only the logarithm of a product, thus the logarithm of the product should be normal, and it is the definition of lognormal: the product of positive random numbers converges to lognormal.
Explain in brief the accumulated depreciation?
What are the characteristics of calibration?
What is the Efficient Markets Hypothesis?
Illustrates an example to explain normal distribution of random numbers?
Explain econometric models.
Explain the concept of the risk–return relationship.
How is arbitrage argument estimated?
Why is traditional, simple VaR measurement not coherent?
Explain in brief about financial ratio?
Who proposed the concept of market efficiency?
18,76,764
1939006 Asked
3,689
Active Tutors
1423384
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!