Return calculations and distributions

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1..Return Calculations

A particular stock had a return last year of 4 percent. However, you look at the stock price and notice that it actually didnâ??t change at all last year. How is this possible?

2.Returns Distributions
What is the probability that the return on small stocks will be less than 100 percent in a single year ( think about it)? What are the implications for the distribution of returns?

 

Reference no: EM1348604

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