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Log Normal Distribution

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Log Normal Distribution

The log-normal distribution is often assumed to be the distribution of a stock price. A distribution is log-normally distributed when the natural log of the set of the random variables in that distribution is a normally distributed. In plain English, if you take the natural log of each of the random numbers from a log-normal distribution, the new number set will be normally distribution. Like the normal distribution, log-normal distribtuion is also defined with mean and standard deviation.

Log Normal Distribution

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