The Probability Distribution for a Portfolio's Returns Can Be Approximated

question 24

Multiple Choice

The probability distribution for a portfolio's returns can be approximated by the familiar bell-shaped curve known as a(n) _________.

• A) normal distribution
• B) expected return vector
• C) covariance matrix
• D) correlation coefficient

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Definitions:

Limiting Factor

A condition or resource that limits the growth, abundance, or distribution of an organism or a population within an ecosystem.

Predation

The biological interaction where one organism, the predator, kills and eats another organism, its prey.

Competitive Exclusion

A principle stating that two species competing for the same resource cannot coexist at constant population values, if other ecological factors remain constant.

Interspecific Competition

A form of competition between individuals of different species competing for the same resource in an ecosystem.