CAIA Level 1 - Chapter 4: Statistical Foundations with Complete Solutions

CAIA Level 1 - Chapter 4: Statistical Foundations with Complete SolutionsCAIA Level 1 - Chapter 4: Statistical Foundations with Complete SolutionsCAIA Level 1 - Chapter 4: Statistical Foundations with Complete SolutionsCAIA Level 1 - Chapter 4: Statistical Foundations with Complete Solutions Ex post returns - ANSWER-- are realized outcomes rather than anticipated outcomes ex ante returns - ANSWER-- future possible returns and their probabilities normal distribution - ANSWER-- is the familiar bell shaped distribution, also known as the Gaussian distribution - is symmetric, meaning the left and the right sides are mirror images of each other. - also, it peaks (or clusters) near the center, with decreasing probabilities of extreme