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If returns do not follow a standard normal distribution, why might a portfolio manager be concerned about "fat

tails"?

A)      The expected return will always be lower with a fat-tail distribution.

B)       The left-hand side of the distribution can be larger than expected.

C)       The expectation of higher returns is greatly reduced.

D)      It is another measure for positive skewness which managers do not like.

E)       It is an indication that skinny tails may occur sometime soon

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