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I'd assume that statement presupposes a normal distribution. Is the stock market return normally distributed?
by darkerside 8y ago
I'd assume that statement presupposes a normal distribution. Is the stock market return normally distributed?
- shakethemonkey 8y agoIt's a power law distribution (Mandelbrot's work). That's why these numbers are outlandish.
- airstrike 8y agoStock returns are modeled based on the assumption that they are lognormal. Whether they really are is a different story.