Add random numbers, find normal, multiply, is it important

Question

While you have some random numbers for adding, get normal them then multiply them, is it important in finance?

Answer 1

This is significant in finance because a stock price after a long period can be thought of like its value on several starting day multiplied by many random numbers, each showing a random return. Therefore, whatever the distribution of returns is, the logarithm of the certain stock price will be normally distributed. We tense to suppose that equity returns are normally distributed, and equities, equivalently themselves are lognormally distributed.