Comments on the figures:

1- Are returns of stocks normally distributed?

2- Are returns of bonds normally distributed?

3- How can you evaluate the riskiness of stocks and bonds based on this figure?

SPY Distribution 60 50 40 Frequency 30 ili 20 10 0 -13.00% -9.70% -6.41% -3.11% 6.77% 10.07% 13.36% More 0.18% 3.48% Return Figure 1- BND Distribution 40 35 30 25 Frequency 20 . 15 10 5 0 -2.58% -1.87% -1.16% -0.45% 1.67% 2.38% 3.08% More 0.25% 0.96% Return Figure 2