TITLE:
The Distribution of Returns
AUTHORS:
David E. Harris
KEYWORDS:
Statistical Distributions, Cauchy Distribution, Stock Market Returns, Accounting Ratios, Ratio Distributions
JOURNAL NAME:
Journal of Mathematical Finance,
Vol.7 No.3,
August
31,
2017
ABSTRACT: 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.