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Can stock prices be normally distributed and are stock returns normally distributed?

Can stock prices be normally distributed and are stock returns normally distributed?

A.

No, you can not have negative prices and every number is possible with any normal distribution. Yes, stock returns are normally distributed

B.

Yes, you can not afford negative prices and with any usual distribution, any number is possible. No, stock returns are normally distributed

C.

Yes, you can not afford negative prices and with any usual distribution, any number is possible. Yes, stock returns are normally distributed

D.

No, you can not have negative prices and every number is possible with any normal distribution. No, stock returns are normally distributed

CMT Association CMT-Level-II Summary

  • Vendor: CMT Association
  • Product: CMT-Level-II
  • Update on: Jul 30, 2025
  • Questions: 262
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