The Distribution of Annual Returns Over Long Periods for Stocks

question 88

True/False

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

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Definitions:

Relevant

Pertains to information or factors that are directly related to the decision-making process.

Timely

Refers to something being done or occurring at a favorable or appropriate time.

Trade-Off

The concept of sacrificing one aspect or feature in order to gain another, often used in discussions of decision-making where competing objectives must be balanced.

Timeliness

The characteristic of being done or occurring at a favorable or useful time, especially in the context of decision-making or business operations.