Which of the following securities is most unlikely to have a symmetrical return distribution,making the use of RiskMetrics model inappropriate?

Question

Quizplus · Accepted Answer

Option contracts tend to have highly skewed return distributions, making the assumptions of a symmetric return distribution in the RiskMetrics model inappropriate. Common stock and preferred stock may have some skewness in their return distributions but are generally more symmetric than option contracts. Consol bonds may have some skewness in their return distributions, but the extent of asymmetry is likely to be less significant than option contracts.

Which of the Following Securities Is Most Unlikely to Have