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write the solutions in a way that shows Excel formula What is the expected value/population mean of your Bernoulli variable X ? 5. What are

write the solutions in a way that shows Excel formula

What is the expected value/population mean of your Bernoulli variable X?

5. What are the (population) variance and standard deviation of X? Having computed the latter, comment on how good your guess for X (i.e. the expected value in 4.) really is.

6. Is the distribution of X symmetric about its mean? Why or why not?

7. Instead, now assume that your investment horizon is 15 trading days, where on each day you either can gain a positive net return (Xi=1) or a negative net return (Xi=0). Assume that the random variables Xi, i=1, 2,,15, are independent. The probability of success is still the same as in question 3. above, and it is the same for all i.

What is the probability that you will make a positive net return on 10 (out of the in total 15) following trading days?

8. Under the same assumptions as in question 7. above, what is the probability that you will make a positive net return on more than 11 (out of the in total 15) following trading days?

Date Closing Price
20100629 23.89
20100630 23.83
20100701 21.96
20100702 19.2
20100706 16.11
20100707 15.8
20100708 17.46
20100709 17.4
20100712 17.05
20100713 18.14
20100714 19.84
20100715 19.89
20100716 20.64
20100719 21.91
20100720 20.3
20100721 20.22
20100722 21
20100723 21.29
20100726 20.95
20100727 20.55
20100728 20.72
20100729 20.35
20100730 19.94
20100802 20.92
20100803 21.95
20100804 21.26
20100805 20.45
20100806 19.59
20100809 19.6
20100810 19.03
20100811 17.9
20100812 17.6
20100813 18.32
20100816 18.78
20100817 19.15
20100818 18.77
20100819 18.79
20100820 19.1
20100823 20.13
20100824 19.2
20100825 19.9
20100826 19.75
20100827 19.7
20100830 19.87
20100831 19.48
20100901 20.45
20100902 21.06
20100903 21.05
20100907 20.54
20100908 20.9
20100909 20.71
20100910 20.17
20100913 20.72
20100914 21.12
20100915 21.98
20100916 20.94
20100917 20.23
20100920 21.055
20100921 20.77
20100922 19.87
20100923 19.56
20100924 20.1
20100927 20.53
20100928 21.4
20100929 21.98
20100930 20.405
20101001 20.6
20101004 20.99
20101005 21.12
20101006 20.46
20101007 20.43
20101008 20.43
20101011 20.24
20101012 20.24
20101013 20.54
20101014 20.75
20101015 20.54
20101018 20.23
20101019 20.05
20101020 20.65
20101021 20.75
20101022 20.72
20101025 20.85
20101026 21.36
20101027 21
20101028 21.19
20101029 21.84
20101101 21.41
20101102 21.25
20101103 21.77
20101104 24.9
20101105 24.44
20101108 24.98
20101109 24.63
20101110 29.36
20101111 28.035
20101112 29.84
20101115 30.8
20101116 29.67
20101117 29.49
20101118 29.89
20101119 30.99
20101122 33.4
20101123 34.57
20101124 35.47

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