A normal distribution is a probability distribution of outcomes that are symmetrical or form a bell curve. In a normal distribution, 68% of the results fall within one standard deviation, and 95% ...

Normal distribution cannot be used to model stock prices because it has a negative side, and stock prices cannot fall below zero. Another similar use of the lognormal distribution is with the ...

Financial markets have extreme outlier events on a regular basis—far more than a normal distribution would predict. For this reason, a limitation of VaR is the statistically most likely outcome ...