1.A key issue with modeling net returns as a normal distribution is

	A.	Returns only make sense in the long run. Hence, in the short run, returns do not follow normal distribution
	B.	Stock Returns have a finite downside of -100%
	C.	Due to stock price decimalization, some returns are irrational numbers which are not part of the normal distribution
	D.	Returns are not mean zero

2.

In a firm commitment procedure, the majority of risk of the issue is borne by

	A.	Underwriter Syndicate
	B.	Designated Market Maker
	C.	Issuing Firm
	D.	Credit rating agencies