The probability density function measures continuous variables. Having said that, it's important to note that stock and investment returns are generally not continuous random variables.
A random variable X is a quantity that can take on values randomly according to a probability ( X ? x), where x is a selected value. The probability (X ?x) gives a scalar value on the interval [0,1] ...
As we shall see, knowing the cdf is equivalent to knowing the density or pmf of a random variable. By this we mean that if you know the cdf, then you can find the density or pmf, and if you know the ...