What are Implications of the normal distribution for Finance
What are Implications of the normal distribution for Finance?
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Similar argument could be applied to the daily changes during exchange rate rates, risk of default or interest rates. We get ourselves using the normal distribution rather naturally for various financial processes.As frequently with mathematical ‘laws’ there is the ‘legal’ small print, while the conditions under that the Central Limit Theorem applies.
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foreign countries to finance its current account deficits
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