A histogram exposure is related to a data set usually in finance. The data set is usually the entire existence of the market and where prices are set. For example, the histogram might use a data set from the S&P 500 on expected returns. Thus for each frequency that the market hit that return it will show up as part of a bar graph. The higher the bar graph the more frequent the market hits that particular return.
The histogram can also show the density amount or find data that provides somewhat of a percentage range of where the stock or market index is likely to hit. Returns are not the only use for the histogram within the market. In fact, you can use histogram graphs for just about any aspect of a stock, bond, or market index. Some of these factors may include the standard deviation or covariance in measuring risk, or returns in different stocks or markets.
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