Reviewing knowledge of normal distributions and returns
Consider the following four statements. Which is
Answer the question
In a Q-Q plot against a normal distribution, heavy-tailed data show an inverted S-shape.
Longer-intervals returns are expected to be more normal than shorter-interval returns.
Log-returns should be log-normally distributed if the Black-Scholes model holds for the price series.
Normally distributed data should have a kurtosis close to 3.
Take Hint (-15xp)