Stock Returns Exhibit ________

question 22

Multiple Choice

Stock returns exhibit ________.

• A) a normal distribution.
• B) symmetry in probability distributions and are not skewed.
• C) fat tails or heavy tails where the "tails" of the distribution are where the extreme values occur.
• D) periods when there are changes that are not much higher than the normal distribution predicts.

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Definitions:

Entrepreneurship

Willingness to take risks to create and operate a business.

Innovation

The process of creating, developing, and implementing new products, processes, or ideas to improve efficiency, effectiveness, or competitive advantage.

Aging Population

refers to the demographic trend of an increasing average age in a population, often resulting in higher proportions of elderly people and various social and economic implications.

Stagnating Wages

The phenomenon where wages remain constant over time without significant increases, often leading to decreased purchasing power due to inflation.