Hi I am writing this to get my understanding clear on the question 6 from CT1 which is now part of CM2. For part b, Calculate the probability that the accumulation of a single investment of £1 will be greater than its expected value 20 years later Why have we considered S20~LogN(20mu,20sigma^2) while question says that returns are independent and identically distributed. Shouldn't S20~(20mu,20^2*sigma^2) like the Fixed interest rate model?
