Author(s)

David E. Harris

University of Providence, Great Falls, USA.

The distribution of the returns on investment depends on the rules in the economic system. The article reviews various return distributions, ranging from equity securities in equilibrium, to antiques bought at auction, to debt instruments with uncertain payouts. A general methodology is provided to construct distributions of returns.

Statistical Distributions, Cauchy Distribution, Stock Market Returns, Accounting Ratios, Ratio Distributions

Harris, D. (2017) The Distribution of Returns. Journal of Mathematical Finance, 7, 769-804. doi: 10.4236/jmf.2017.73041.