The daily percentage change in an exchange rate is compared to a normal distribution with the same mean and standard deviation.Which of the following is true
A) Both small and large exchange rate moves are more likely than with the normal distribution
B) Small exchange rate moves are less likely and large exchange rate moves are more likely than with the normal distribution
C) Large exchange rate moves are less likely and small exchange rate moves are more likely than with the normal distribution
D) Both small and large exchange rate moves are less likely than with the normal distribution

Question

Quizplus · Accepted Answer

Both large and small movements in the exchange rate happen more often than the normal distribution would predict.

The Daily Percentage Change in an Exchange Rate Is Compared