In finance we generally assume that stock returns are


In finance, we generally assume that stock returns are normally distributed. Which of the following are common reasons for why this assumption is flawed: I. Stock return exhibit skewness and returns II. Stock returns are a good predictor of future returns III. Stock returns are truncated at -100% IV. The average equity risk premium is 7.2% a. I only b. I and II only c. II and III only d. II and IV only.

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Financial Management: In finance we generally assume that stock returns are
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