Question: Returns on common stocks. Example 5 informs us that financial theory uses the mean and standard deviation to describe the returns on investments. Figure 11.12

Returns on common stocks. Example 5 informs us that financial theory uses the mean and standard deviation to describe the returns on investments.

Figure 11.12 (page 232) 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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