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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
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
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