The Distribution of Daily Returns Over Short Periods for Stocks

question 47

True/False

The distribution of daily returns over short periods for stocks is more closely related to the normal distribution than the lognormal distribution.

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Definitions:

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Variable Administrative Expenses

Expenses within the administration sector that fluctuate with the level of business activity, like sales commissions.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and generate profit.