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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 probability density function (PDF) describes the likelihood of different outcomes for a continuous random variable.
Fundamental methods are developed for the derivation of the probability density function and moments of rational algebraic functions of independent random variables. Laplace and Mellin integral ...
SIAM Journal on Applied Mathematics, Vol. 18, No. 4 (Jun., 1970), pp. 721-737 (17 pages) The probability density functions of products of independent beta, gamma and central Gaussian random variables ...
By using one of the common stock probability distribution methods of statistical calculations, an investor may determine the likelihood of profits from a holding.
Nonparametric methods provide a flexible framework for estimating the probability density function of random variables without imposing a strict parametric model.