Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose these are the monthly returns of my portfolio from October 2012 - November 2020. part a) Do the returns appear to be normally distributed?
Suppose these are the monthly returns of my portfolio from October 2012 - November 2020.
part a) Do the returns appear to be normally distributed? t distributed? What parameters seem to fit the distribution? part b) Assuming the distribution is normally distributed, what is the probability that the portfolio returns less than 1% in any month?
I know the monthly mean is 2.01% and monthly standard deviation is 4.68%
Monthly Returns 14 20.0000000% 12 15.000000 0% 10 10.0000000% 8 5.0000000% www.one Muut 6 0.0000000% 4 -5. 0000000% 2 -10.0000000% -15.0000000% 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Month Monthly Returns Monthly Returns 14 20.0000000% 12 15.000000 0% 10 10.0000000% 8 5.0000000% www.one Muut 6 0.0000000% 4 -5. 0000000% 2 -10.0000000% -15.0000000% 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Month Monthly ReturnsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started