What potential problems do you see with using normal distributions to project revenues or stock prices in

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What potential problems do you see with using normal distributions to project revenues or stock prices in simulation modeling? What are some ways of addressing these problems?

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Entrepreneurial Finance Venture Capital Deal Structure And Valuation

ISBN: 9781503603219

2nd Edition

Authors: Janet Kiholm Smith, Richard L. Smith

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Question Posted: Apr 26, 2024 06:02 AM

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What potential problems do you see with using normal distributions to project revenues or stock prices in

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Using normal distributions to project revenues or stock prices in simulation modeling can have potential problems Some of the main issues are as follows Fat Tails Normal distributions assume that extr...View the full answer

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

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