Question
.1. Go to the Yahoo Finance website and download the weekly adjusted closing share price over a five-year period beginning 1 st Jan 2018 and
.1. Go to the Yahoo Finance website and download the weekly adjusted closing share price over a five-year period beginning 1st Jan 2018 and ending 31st December 2022 inclusive for one stock of your choice. You can download these data from the Historical prices section and then the Download to Spreadsheet link. Save this information in an excel spreadsheet. Make sure you sort the data in ascending order by date (i.e. 1st Jan 2018 to 31st December 2022)
2. Calculate the expected weekly returns for the stock assuming continuous compounding (i.e. use log returns) and the standard deviation for the stock.
3. Draw a histogram showing the empirical return distribution of the stock. Are the returns normally distributed? Lay over the theoretical distribution on the graph. Hint: Comment on the distribution by observing the moments of the distribution and support your argument with the skewness and kurtosis figures.
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