easy · FRM Part 1 Quantitative Analysis
How does the mean of a lognormal distribution compare to the mean of its associated normal distribution (X = e^Y where Y is the log-variable)?
- The lognormal mean is lower due to bounded results.
- There is no mathematical relationship between the two.
- The means are identical.
- The lognormal mean is higher due to the impact of variance in the exponent.
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