According to finance theory returns for stocks are ______________ distributed.
A)Asymmetrically
B)Normally
C)Fundamentally
D)None of the above

Question

Quizplus · Accepted Answer

According to finance theory, returns for stocks are assumed to be normally distributed. This means that the majority of the returns will be clustered around the mean with fewer returns occurring further away from the mean, creating a bell-shaped curve. While there may be some asymmetry in the distribution, it is still considered to be predominantly normal.

According to Finance Theory Returns for Stocks Are ______________ Distributed