# Fight Finance

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The below three graphs show probability density functions (PDF) of three different random variables Red, Green and Blue. Let $P_1$ be the unknown price of a stock in one year. $P_1$ is a random variable. Let $P_0 = 1$, so the share price now is \$1. This one dollar is a constant, it is not a variable.

Which of the below statements is NOT correct? Financial practitioners commonly assume that the shape of the PDF represented in the colour: