15.

The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let P₁ be the unknown price of a stock in one year. P₁ is a random variable. Let P₀=1, so the share price now is $1. This one dollar is a constant, it is not a variable.

Which of the below statements is NOT correct?

a.

Green is a stock's continuously compounded return.

b.

Red is log-normally distributed, and the mean is higher than the median.

c.

Blue is a stock's future price (P1).

d.

Red is a stock's log gross discrete return (LGDR).

e.

Blue is a stock's gross discrete return (GDR).