Using the daily returns on the EAA Equity Index over the past five years and ranking them from lowest to highest daily return, we show the return bins from 1 (the lowest 5 percent) to 20 (the highest 5 percent) as follows:

Because of the continuous nature of returns, it is not likely for a return to fall on the boundary for any bin other than the minimum (Bin = 1) and maximum (Bin = 20). 

Using the data in Exhibit 4, complete the following tasks:

1. Identify the 10th and 90th percentiles. 

2. Identify the first, second, and third quintiles. 

3. Identify the first and third quartiles. 

4. Identify the median. 

5. Calculate the interquartile range.  

Transcribed Image Text:

Bin 1 2 3 4 5 6 7 8 9 Exhibit 4: EAA Equity Index Daily Returns Grouped by Size of Return 10 11 12 13 14 15 16 17 18 19 20 Cumulative Percentage of Sample Trading Days (%) 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Daily Return (%) between Lower Bound Upper Bound -4.108 -1.416 -0.876 -0.629 -0.432 -0.293 -0.193 -0.124 -0.070 -0.007 0.044 0.108 0.173 0.247 0.343 0.460 0.575 0.738 0.991 1.304 -1.416 -0.876 -0.629 -0.432 -0.293 -0.193 -0.124 -0.070 -0.007 0.044 0.108 0.173 0.247 0.343 0.460 0.575 0.738 0.991 1.304 5.001 Number of Observations 63 63 63 63 63 63 62 63 63 63 63 63 63 62 63 63 63 63 63 63