The Distribution of Returns, Measured Over Long Intervals, Like Annual

question 49

Multiple Choice

The distribution of returns, measured over long intervals, like annual returns, is best approximated by the

• A)normal distribution.
• B)binomial distribution.
• C)lognormal distribution.
• D)uniform distribution.

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Definitions:

Units

A measurement of quantity for inventory, production, or financial calculation, indicating single items or entities.

Variable Cost

Expenditures that alter in correlation with production or service output levels.

Units

A measure of quantity, either as product units in the context of business or other defined measures.

Variable Cost

Costs that vary directly with the level of production output, such as raw materials and labor costs directly involved in production.