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This lesson is a part of the course Statistical Foundations of VaR
The normal distribution is the well-known bell-shaped curve depicted below. The bell-shaped curve comes from a statistical tendency for outcomes to cluster symmetrically around the mean (or average).
Deviations from the mean are described in terms of standard deviations. In all normal distributions, 68% of outcomes will fall within 1 standard deviation to either side of the mean.
