What Is the Range of the Standard Normal Distribution

question 56

Multiple Choice

What is the range of the standard normal distribution?

• A)0 and 1
• B)−3 and 3
• C)0 and 3
• D)minus infinity and plus infinity

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Definitions:

Zero Alphas

Situations in which an investment performs exactly as expected according to its beta, showing neither added nor diminished value.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by government bonds.

Expected Market Rate

The anticipated return that investors predict they will receive from an investment in the financial markets.

Systematic Risk

The risk associated with market fluctuations that cannot be mitigated through diversification, affecting all investments across the board.