The probability distribution of a less risky return is more peaked than that on a riskier return. What shape would the probability distribution have for (a) completely certain returns and (b) completely uncertain returns?© BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
a) A completely certain return of $x indicates 100% probability concentrated at X = x. Therefore, ...
The probability distribution for a less risky return is determined.