39. The following frequency d istribution shows the monthly stock returns for Home Depot for the years 2003 through 2007.

Class (in percent) Observed Frequency Less than − 5 13

− 5 u p to 0 16 0 up to 5 20 5 or more 11 n = 60 Source: www.yahoo.finance.com.

Over this time period, the following summary statistics are provided:

Mean Median Standard Deviation Skewness Kurtosis 0.31% 0.43% 6.49% 0.15 0.38

a. Conduct a goodness-of-fit test for normality at the 5%

significance level. Can you conclude that monthly stock returns do not follow the normal distribution?

b. Conduct the Jarque-Bera test at the 5% significance level. Are your results consistent with your answer in part a?