7. A study of daily returns for the S&P 500 by Cook Pine Capital LLC investigated returns from December 30, 1927, through November 21, 2008.21 For the 20,319 daily returns, the following information was reported:

Mean: 0.026%, Standard deviation: 1.182%, Kurtosis: 18.347, Skewness: −0.098, Maximum daily return: 16.61%, and Minimum daily return: −20.47%.

The table below shows the daily return distribution as observed over the period and what the normal distribution would predict. The distribution is in terms of the number of standard distributions above the mean.

What does the information in the table suggest about the daily return distribution for the S&P 500?

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Number of Standard Deviations Actual Distribution Normal Distribution from Mean ObservedPercentagePredictedPercentage +60 26 0.13 0 0.00 +50 13 0.06 0 0.00 +40 34 0.17 1 0.00 +30 89 0.44 27 0.13 +20 276 1.36 435 2.14 +10 1,393 6.86 2,761 13.59 16,603 81.71 13,872 68.27 -10 1,377 6.78 2,761 13.59 -20 325 1.60 435 2.14 -30 100 0.49 27 0.13 -40 43 0.21 1 0.00 -50 19 0.09 0 0.00 -60 21 0.10 0 0.00 Total 20,319 100 20,319 100