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The lognormal distribution
St+Dt=SterDt If the return follows a normal distribution, then the price follows a lognormal distribution Use the matrix function FREQUENCY (data array; bins array) Plot the returns distribution Simulate the price path: St+Dt=Ste(mDt+sZsqrt(Dt)) Random number from a normal disribution: Data|data analysis| random number generator Plot the price path
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Random number generation
Data / Data analysis / random number generation Estimate the end-of-year price Use the matrix function FREQUENCY (data array; bins array) create a plot of the lognormal distribution
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