The Normal Distribution Is Useful in Analyzing Security Returns Because

question 127

Multiple Choice

The normal distribution is useful in analyzing security returns because:

• A) We frequently deal with finite data sets.
• B) Of its bell-shaped appearance.
• C) 95% of all observations fall within three standard deviations of the mean.
• D) The distribution of security returns is usually different from a normal distribution.
• E) It can be completely described by its mean and standard deviation.

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