Capital Market Theory

Question:

You've been studying the returns of three recently introduced virtual currencies: aCoin, bCoin and Coin. You find that the distributions of their returns are well approximated by the following distributions: Coin: Uniform over the interval [-0.15,0.20] bCoin: Uniform over the interval [-0.10,0.20] cCoin: 20% probability of a 0.025 return, and otherwise uniform over the interval [-0.15,0.20] HINT: The cumulative distribution function of a uniform random variable over the interval [a, b] is given by F(x) = a; its mean is given by 2 X-a a+b 1. Make one graph comparing the PDF's (Probability Density Functions) of the three return distributions. You've been studying the returns of three recently introduced virtual currencies: aCoin, bCoin and Coin. You find that the distributions of their returns are well approximated by the following distributions: Coin: Uniform over the interval [-0.15,0.20] bCoin: Uniform over the interval [-0.10,0.20] cCoin: 20% probability of a 0.025 return, and otherwise uniform over the interval [-0.15,0.20] HINT: The cumulative distribution function of a uniform random variable over the interval [a, b] is given by F(x) = a; its mean is given by 2 X-a a+b 1. Make one graph comparing the PDF's (Probability Density Functions) of the three return distributions