If the Distribution of Returns Is Non-Normal and Positively Skewed,the

question 5

Multiple Choice

If the distribution of returns is non-normal and positively skewed,the investor has a greater probability of earning __________ returns rather than __________ returns.

• A) extreme positive; extreme negative
• B) extreme negative; extreme positive
• C) none of theses choices

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Definitions:

Best Estimate

An informed, accurate guess based on available data, used in various contexts to project outcomes or make decisions.

Weighted Point Evaluation System

A decision-making tool that helps businesses evaluate various choices based on a series of criteria, each of which is assigned a different weight based on its importance.

Criteria For Evaluation

The standards or benchmarks used to assess or judge the quality, value, or suitability of something.

Negotiate

The process of discussing terms and conditions between two or more parties with the goal of reaching a mutually acceptable agreement.