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When You Go to Check on Your Sleeping Child, You

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When you go to check on your sleeping child, you observe that his eyes are moving back and forth rapidly under his eyelids. It is likely that he is


Definitions:

Daily Returns

The profit or loss of an investment over a single trading day, expressed as a percentage of the investment's value at the start of the trading day.

Normally Distributed

A statistical term that describes a bell-shaped frequency distribution that is symmetric about the mean, used in various financial models to assume the distribution of returns or asset prices.

Risk-Adjusted Returns

Performance measurement that evaluates the return gained from an investment relative to the risk taken, often calculated using measures such as the Sharpe ratio.

Small Firms

Companies with a relatively small market capitalization.

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