Question
A key issue with modeling net returns as a normal distribution is A. Returns are not mean zero B. Due to stock price decimalization, some
A key issue with modeling net returns as a normal distribution is
A. Returns are not mean zero
B. Due to stock price decimalization, some returns are irrational numbers which are not part of the normal distribution
C. Returns only make sense in the long run. Hence, in the short run, returns do not follow normal distribution
D. Stock Returns have a finite downside of -100%
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Personal Finance
Authors: Megan Noel, Dan French
2nd Edition
1465246479, 9781465246479
