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Trading Terms

Normal Distribution

The standard deviation measures the variability of net returns around the average. In statistical testing, simulated net returns are assumed to follow a specific distribution. When drawn from a normal distribution, both low and high returns have an equal probability, with the average net return being the most likely in a quarter. The standard deviation is a measure of the extent to which net returns deviate from the average.
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Trading Terms encompass terminology and phrases commonly used in financial markets, including terms
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