Recent content by royalstatus

RGV, Will it be Y~N(ln(m),ln(s^2))? I'm not particularly sure of the question you are asking.

The variance I got was -1/2σ(Var Ct+1/Ct) I think the true variance might have something to do with the moment generating function for the lognormal distribution. My answer is different from what is in the document, so I'm guessing I'm not thinking of this the right way

Homework Statement Given that the natural log of the growth consumption rate is conditionally normally distributed. I am trying to convert it to a lognormal distribution, but I keep getting a variance that is different from what is in the solution manual. The problem is #3 in the document below...