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S&P Problems
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Go to www.mhhe.com/edumarketinsight (bookmark this page!). Under Excel Analytics go to Market Data and find Monthly Adjusted Prices, which you should download into a spreadsheet. Calculate the standard deviation, skew, and kurtosis of the recent history of returns for this firm. How do they compare to the values for the S&P 500? Try repeating the exercise for other firms. Can you reach any conclusions about the pattern of these statistics for individual firms versus the diversified market index? Do returns for the index appear to be better described by the normal distribution than the returns of the individual firms?








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