Question: 12.18 Returns on common stocks. Example 5 informs us that financial theory uses the mean and standard deviation to describe the returns on investments. Figure
12.18 Returns on common stocks. Example 5 informs us that financial theory uses the mean and standard deviation to describe the returns on investments. Figure 11.13 (page 260) is a histogram of the returns of all New York Stock Exchange common stocks in one year. Are the mean and standard deviation suitable as a brief description of this distribution? Why?
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