Probability Distributions for Modeling Stock Market Returns—An Empirical Inquiry
Jayanta K. Pokharel,
Gokarna Aryal,
Netra Khanal
et al.
Abstract:Investing in stocks and shares is a common strategy to pursue potential gains while considering future financial needs, such as retirement and children’s education. Effectively managing investment risk requires thoroughly analyzing stock market returns and making informed predictions. Traditional models often utilize normal variance distributions to describe these returns. However, stock market returns often deviate from normality, exhibiting skewness, higher kurtosis, heavier tails, and a more pronounced cent… Show more
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