The Distribution of Returns, Measured Over a Short Interval of Time

question 62

Multiple Choice

The distribution of returns, measured over a short interval of time, such as daily returns, is best approximated by the

• A)normal distribution.
• B)lognormal distribution.
• C)binomial distribution.
• D)uniform distribution.

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Definitions:

Currency Ownership

Refers to holding or possessing currency, both physical and digital, by individuals, businesses, or governments.

Fiat Currencies

Money that a government has declared to be legal tender, though it is not backed by a physical commodity.

Digital Currencies

Electronic money that exists in a digital form, enabling instant transactions and borderless transfer-of-ownership.

Valueless

Lacking in value, importance, or utility; having no worth or significance.