Why Should Companies Design Based on the Normal Distribution?

Why Should Companies Design Based On the Normal Distribution?
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Would using the normal distribution be advantageous for the company? Why or why not?
The financial industry should use normal distribution in designing investment portfolios. Using normal distribution would benefit the financial industry players, including commercial banks, as the investors and financial analysts leverage it to evaluate their security returns or the overall industry sensitivity. Any investment incorporates two domains: risk and returns. Investors constantly seek avenues to reduce investment risk while maximizing returns. The normal distribution establishes these two parameters by the standard deviation for the inherent risk and the mean for the anticipated returns. The normal distribution graph enables investors and financial analysts to represent risks and returns through its standard deviation and mean in an explicitly delineated range (Seth, 2022). This is advantageous for the investment bank because it recognizes what returns to expect with high certainty. In addition, normal distribution constitutes the standard assumption for observation modeling that researchers and practitioners can use in general (Ma et al., 2022). Knowing the standard deviation and m...