Reading 9: Common Probability Distributions

Question 1

Binomial Probability Function

Common Probability Distributions

9.1

Answer 1

Question 2

Area Under a Curve

Common Probability Distributions

9.2

Answer 2

Question 3

Normal Distribution for One Random Variable

Common Probability Distributions

9.3

Answer 3

Question 4

Standardizing Random Variable X

Common Probability Distributions

9.4

Answer 4

Question 5

Continuously Compounded Return

(associated with a holding period)

Common Probability Distributions

9.5

Answer 5

Question 6

Continuously Compounded Return to Time T

(sum of the one-period continuously compounded returns)

Common Probability Distributions

9.6

Answer 6

Question 7

Continuously Compounded Return; one period

*Independently and Identically Distributed IID, with mean and variance

Common Probability Distributions

9.7

Answer 7

Question 8

Continuously Compounded Return; TOTAL (T)

*Independently and Identically Distributed IID, with mean and variance

Common Probability Distributions

9.8

Answer 8