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

question 69

Multiple Choice

The distribution of returns, measured over long intervals, like annual returns, can be approximated by

• A) Normal distribution
• B) Binomial distribution
• C) Lognormal distribution
• D) none of the above

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Definitions:

IRA

Individual Retirement Account, a tax-advantaged investing tool for individuals to earmark funds for retirement savings.

Contributed

To provide or donate something of value, often used in the context of contributing money to a retirement account or charity.

Child Tax Credit

A tax credit offered to taxpayers for each qualifying child, aimed at reducing a taxpayer's liability on a dollar-for-dollar basis.

AGI

Adjusted Gross Income, which is your gross income minus allowable deductions, used as a basis for calculating taxable income.