Explanation:
A return distribution with negative skewness typically exhibits frequent minor gains and occasional significant losses. This is because negative skewness indicates a longer left tail, representing extreme losses. Options B and C describe distributions with positive skewness, which are not consistent with the given scenario. The correct interpretation aligns with the characteristics of negative skewness.
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A return distribution exhibiting negative skewness and a mean of zero is most likely characterized by:
A
frequent minor gains and occasional significant losses.
B
frequent minor losses and occasional significant gains.
C
frequent significant losses and occasional minor gains.