1. The U.S. large stock portfolio has a skew of -0.31 based on the annul returns from 1926 to 2013. Compared to the normal distribution, does this mean that the U.S. large stock portfolio is more likely to incur extreme gains or extreme losses?

2. In order to accurately calculate an employee's pay, it is important that payroll clearly understands the different types of employee remuneration. In your own words, list and define the four categories of employment income, such as earnings, allowances, benefits, and expense reimbursements, providing an example (other than regular pay) for each category.