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


closed as not a real question by Bob Jansen, Karol J. Piczak, Shane, Tal Fishman, Joshua Ulrich Oct 30 '11 at 1:02

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    $\begingroup$ Why close? If anything it could be community wiki. $\endgroup$ – Ryogi Oct 29 '11 at 17:42
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    $\begingroup$ 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. $\endgroup$ – Bob Jansen Oct 29 '11 at 17:57
  • $\begingroup$ Certainly off-topic as it's currently phrased. Asking about the "most popular" is inappropriate on any StackExchange site... $\endgroup$ – Shane Oct 29 '11 at 19:03
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    $\begingroup$ 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.). $\endgroup$ – Tal Fishman Oct 29 '11 at 23:00
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    $\begingroup$ BTW, the answer to your question is in chapter 6 of Wilmott's FAQ in Quantitative Finance. $\endgroup$ – Tal Fishman Nov 1 '11 at 19:33

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