The probability distribution of a less risky expected return is more peaked than that of ariskier return. What shape would the probability distribution be for (a) completely certainreturns and (b) completely uncertain returns?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
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The probability distribution of a less risky expected return is more peaked than that of a
riskier return. What shape would the probability distribution be for (a) completely certain
returns and (b) completely uncertain returns?

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