Question: Which statements about normal distributions are correct? The standard deviation of a portfolio of assets is always equal to the sum of the individual assets'
Which statements about normal distributions are correct?
The standard deviation of a portfolio of assets is always equal to the sum of the individual assets' standard deviations.
They are symmetric around their means.
The standard deviation and variance are the appropriate measures of risk for a portfolio with normally distributed returns.
The return on a portfolio comprising two or more assets whose returns are normally distributed also will be normally distributed.
Investment management is more tractable when returns are assumed to be normal.
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