Question: We often assume a normal distribution in asset returns over the short-term. Name two advantages of using this assumption. What is an exchange-traded fund? Name

  1. We often assume a normal distribution in asset returns over the short-term. Name two advantages of using this assumption.
  2. What is an exchange-traded fund? Name two advantages they have over ordinary open-end mutual funds. Name two disadvantages.
  3. List two of the assumptions of the CAPM. Are they realistic assumptions? Discuss.

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