a distribution of returns

USAGE SUMMARY

The phrase "a distribution of returns" is correct and usable in written English.
It can be used in contexts related to finance, statistics, or risk analysis when discussing the variability or spread of returns on an investment or portfolio. Example: "The analysis revealed a distribution of returns that indicated a higher risk associated with the investment strategy."

✓ Grammatically correct

Science

Academia

News & Media

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

According to prevailing theory, each company has returns that can be summarized by a distribution of returns that is symmetric and stable, and can be characterized by its average or expected value and a measure of volatility or dispersion.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

A distribution of return times (50-200-yr intervals) similar to parts of modern boreal Canada prevailed when late-Glacial spruce woodland dominated the site.

Duke University

These simulations yield a distribution of future returns and various measures of the risk of the portfolio.

University of California, Berkeley

That's an incredibly tight distribution of returns.

Yale University

In situations where the distribution of returns facing a regulated company includes a material asymmetry, setting the allowed rate of return at the observed market cost of capital may not be sufficient for the risk the utility investors bear.

Risk and Return for Regulated Industries

And I had this notion that, if a market priced assets efficiently, the distribution of returns around the market return would be very tight.

Yale University

Second, the distribution of returns exhibits a long tail of limited (sometimes even negative) returns with a few companies claiming to make disproportionate returns from big data investments.

Journal of Big Data

Because this process occurs in a similar way across stocks, the distribution of returns for different stocks collapse onto one curve.

Plosone

Wiltbank shows that startups have been a fantastic asset class over the past decade: while the distribution of returns has naturally been highly non-normal, on average angel investments have produced a 22% internal rate of return (IRR), outperforming not only public equities and property but also venture capital.

TechCrunch

A new software algorithm removed this artefact and returns a distribution of values that is similar to other current oximeters.

Archives of Disease in Childhood: Fetal and Neonatal Edition

In conclusion, we have shown that the algorithm used by one generation of the Masimo SET Radical oximeter returns a distribution of saturation values above 87% that is different from other oximeters.

Archives of Disease in Childhood: Fetal and Neonatal Edition

Expert writing Tips

Best practice

When discussing investment performance or risk analysis, use "a distribution of returns" to accurately depict the range and frequency of possible outcomes.

Common error

Avoid interpreting "a distribution of returns" solely as an average return. The distribution encompasses the entire range of possible returns and their associated probabilities, which provides a more comprehensive view of risk and potential rewards.

Linguistic Context

The phrase "a distribution of returns" functions as a noun phrase. It typically serves as the subject or object of a sentence, denoting the statistical or probabilistic range of possible returns from an investment or asset. As Ludwig AI confirms, the phrase is correct and frequently used.

Expression frequency: Very common

Frequent in

Science

30%

Academia

30%

News & Media

22%

Less common in

Formal & Business

9%

Wiki

3%

Reference

6%

Ludwig's WRAP-UP

In summary, "a distribution of returns" is a noun phrase used to describe the range of possible outcomes from an investment, frequently employed in scientific, academic, and news contexts. Ludwig AI confirms its correctness and common usage. It is vital for financial analysis and risk assessment, providing a comprehensive picture beyond simple averages. When using this phrase, ensure you are communicating the complete picture of potential outcomes, not just a single expected value. Related phrases include "return distribution", "range of returns", and "spread of returns", which can provide similar but subtly different emphasis on the concept. Remember to avoid skewing analysis with an expectation of a simple average return.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

return distribution

Omits the indefinite article "a", resulting in a more concise phrasing but slightly less emphasis on a specific instance.

returns distribution

Pluralizes "return" indicating a compilation or set of different returns.

statistical distribution of returns

Adds specificity, explicitly identifying the distribution as a statistical one.

pattern of returns

Focuses on the observable pattern or arrangement of returns rather than the statistical distribution.

range of returns

Highlights the span between the minimum and maximum returns, emphasizing the extent of variability.

spread of returns

Emphasizes the dispersion or scattering of returns around a central value.

variability in returns

Highlights the extent to which returns tend to differ from one another.

dispersion of returns

Focuses on how the returns are spread out or scattered.

distribution of investment outcomes

Broadens the scope to include all investment outcomes, not just returns.

expected returns and their probabilities

It specifies what is important to know about returns distribution.

FAQs

How is "a distribution of returns" used in financial analysis?

In financial analysis, "a distribution of returns" helps assess the risk and potential reward of an investment by illustrating the range of possible outcomes and their probabilities. It's used in models like Value at Risk (VaR) and Expected Shortfall to understand potential losses.

What does it mean when "a distribution of returns" is skewed?

If "a distribution of returns" is skewed, it means the returns are not symmetrically distributed around the average. A positive skew indicates more frequent smaller losses and few extreme gains, while a negative skew suggests more frequent smaller gains and few extreme losses.

Which statistical measures are used to describe "a distribution of returns"?

Statistical measures like mean (average), standard deviation (volatility), skewness (asymmetry), and kurtosis (tail thickness) are used to describe "a distribution of returns". These measures provide insights into the central tendency, risk, and shape of the distribution.

What is the difference between "range of returns" and "a distribution of returns"?

While the "range of returns" simply specifies the lowest and highest possible returns, "a distribution of returns" provides a more comprehensive picture by showing how frequently each return occurs within that range. The distribution includes information about probabilities, while the range does not.