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Logarithms of the Returns of the Underlying Stock are Normally Distributed Assignment | Homework For You

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May 27th, 2020

Question 9 The BSOPM assumes that the logarithms of the returns of the underlying stock are normally distributed. Why is this a concern?Homework For You

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Logarithms will never follow a normal distribution

This is a reasonable assumption for most stocks

Logarithms always follow a binomial distibution

D. Stock returns. Get Finance homework help today

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