Rates of Returns of Stocks Stocks may be categorized by sectors$.$ Go to

www$.$pearsonhighered.com$/$sullivanstats and download $3\_2\_29$ using the file format of your choice. The data represent the one$-$year rate of return $($in percent$)$ for a sample of consumer cyclical stocks and industrial stocks. Note: Consumer cyclical stocks include names such as Starbucks and Home Depot. Industrial stocks include names such as $3M$ and FedEx.

$($a$)$ Draw a relative frequency histogram for each sector using a lower class limit for the first class of $-50$ and a class width of $10.$ Which sector appears to have more dispersion?

$($b$)$ Determine the mean and median rate of return for each sector. Which sector has the higher mean rate of return? Which sector has the higher median rate of return?

$($c$)$ Determine the standard deviation rate of return for each sector. In finance, the standard deviation rate of return is called risk. Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns for these sectors$?$ Do you think the higher returns are worth the cost? Explain.