Calculate mean, standard deviation, excess kurtosis, and skew for the SPY data sample from Exercise 2.1. Draw the distribution function of this data set in comparison with the standard normal distribution and the standard Cauchy distribution.

Compare results with Figure 3.1.

Hint: (1) Normalize returns by subtracting their mean and dividing the results by the standard deviation. (2) Calculate the histogram using the Histogram tool of the Data Analysis menu. (3)

Divide the histogram frequencies with the product of their sum and the bin size (explain why it is necessary).