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What are the most popular probability distributions in quantitative finance and what are their applications?

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Why close? If anything it could be community wiki. –  Ryogi Oct 29 '11 at 17:42
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I would rephrase the question in something like: What probability distributions are commonly used, what are their properties and what are their applications. The problems with that are: it depends on your field, the particular model etc. and it's probably better explained on Wikipedia. –  Bob Jansen Oct 29 '11 at 17:57
    
Certainly off-topic as it's currently phrased. Asking about the "most popular" is inappropriate on any StackExchange site... –  Shane Oct 29 '11 at 19:03
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It would be much better to rephrase this as a series of specific questions on the major distributions (normal, Poisson, Weibull, Levy-stable, Pareto, etc.). –  Tal Fishman Oct 29 '11 at 23:00
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BTW, the answer to your question is in chapter 6 of Wilmott's FAQ in Quantitative Finance. –  Tal Fishman Nov 1 '11 at 19:33
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closed as not a real question by Bob Jansen, Karol Piczak, Shane, Tal Fishman, Joshua Ulrich Oct 30 '11 at 1:02

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