The probability density function is a statistical measurement of how often investment returns fall within a specified range. PDFs are typically depicted on a graph, with a normal bell curve ...

Madelyn Goodnight / Investopedia A probability distribution is a statistical function that describes all values a random variable can take within a given range and the likelihood that they will.

Building on the widely-used double-lognormal approach by Bahra (1997), this paper presents a multi-lognormal approach with restrictions to extract risk-neutral probability density functions (RNPs) for ...