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.

Blue is a stock's future price (P1), with a minimum value of zero.

b.

Green is the log gross discrete return (LGDR).

c.

Red is a stock's gross discrete return (GDR), with a minimum value of negative one.

d.

Green is normally distributed with the same mean and median.

e.

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

frequency 0,6 Red/ 0.5 0.4 0.3 Blue Green 0.2 0.1 -2 -1 0 1 2 variable 3 frequency 0,6 Red/ 0.5 0.4 0.3 Blue Green 0.2 0.1 -2 -1 0 1 2 variable 3