1.1 0.23 3.2 -7.1 4.1 2.3 -0.34 0.45 2.54 1.7 3.4 -0.23 5.6 1.6 1.2 4.2 1.56 -4.54 0.31 0.1 3.4 5.4 4.3 2.6 1.89 2.5 5.1 -0.1 4.01 0.7

Assume that you expect to invest in a portfolio of 100 stocks and the portfolio return is the average return of the component stocks. The attached file (Data.txt) contains the next year returns (in \%) on the 30 randomly selected stocks in this portfolio. Problem 1 Are the stock returns normally distributed? Explain. Problem 2 Compute the next year portfolio return? Explain. Problem 3 Suppose you would invest in a portfolio only if its next year return is at least 1.5%. Would you invest in this portfolio? Explain. Problem 4 What is the likelihood that the next year return on a randomly selected stock in this portfolio is positive? Explain. Problem 5 Would you invest in this portfolio if you prefer that the proportion of stocks with positive next year returns in a portfolio is greater than 80% ? Explain. Problem 6 How could your answers to the previous questions change if you have the information about the next year returns on a greater number of stocks? Explain. Assume that you expect to invest in a portfolio of 100 stocks and the portfolio return is the average return of the component stocks. The attached file (Data.txt) contains the next year returns (in \%) on the 30 randomly selected stocks in this portfolio. Problem 1 Are the stock returns normally distributed? Explain. Problem 2 Compute the next year portfolio return? Explain. Problem 3 Suppose you would invest in a portfolio only if its next year return is at least 1.5%. Would you invest in this portfolio? Explain. Problem 4 What is the likelihood that the next year return on a randomly selected stock in this portfolio is positive? Explain. Problem 5 Would you invest in this portfolio if you prefer that the proportion of stocks with positive next year returns in a portfolio is greater than 80% ? Explain. Problem 6 How could your answers to the previous questions change if you have the information about the next year returns on a greater number of stocks? Explain