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