Discover what a log-normal distribution is, its financial applications, and how to calculate it, including using Excel for practical financial analysis.

The normal curve is plotted against the same actual return data in the graph above. The variance-covariance is similar to the historical method except it uses a familiar curve instead of actual data.

The Centre for Multilevel Modelling (CMM) is a research centre based at the University of Bristol. Our researchers are drawn from the School of Education. We collaborate with a range of researchers in ...