Question

1. Calculate the weekly return for BIT and construct a histogram in Excel. Does the data on return rates appear normally distributed? On the basis of z-scores do you find evidence of outliers? Hint: the formula for a return is (Current Price – Previous price)/Previous price multiplied by 100.

Date	Weekly Return BIT
11/3/13	-46.16
18/3/13	-0.01
25/3/13	39.23
1/4/13	13.07
8/4/13	23.93
15/4/13	41.36
22/4/13	26.5
29/4/13	20.39
6/5/13	25.5
13/5/13	42.52
20/5/13	37.88001
27/5/13	15.66
3/6/13	20.98
10/6/13	25.28
17/6/13	11.97
24/6/13	-2.46
1/7/13	14.95
8/7/13	-3.5
15/7/13	-8
22/7/13	-0.05
29/7/13	25.49
5/8/13	4.099998
12/8/13	9.529999
19/8/13	58.75
26/8/13	36.12
2/9/13	47.87
9/9/13	43.09
16/9/13	42.08
23/9/13	40.24001
30/9/13	51.77
7/10/13	93.52
14/10/13	113.89
21/10/13	133.5
28/10/13	231.05
4/11/13	447.08
11/11/13	874.55
18/11/13	1091.99
25/11/13	916.27
2/12/13	927.8199
9/12/13	681.78
16/12/13	789.11
23/12/13	899
30/12/13	937.92
6/1/14	877.1
13/1/14	900
20/1/14	828.99
27/1/14	750
3/2/14	640
10/2/14	628.37
17/2/14	550
24/2/14	574.73
3/3/14	569.53
10/3/14	546.83
17/3/14	460
24/3/14	418.31
31/3/14	375
7/4/14	467.54
14/4/14	369
21/4/14	402.16
28/4/14	356
5/5/14	410.9
12/5/14	548.66
19/5/14	652.71
26/5/14	650
2/6/14	571.71
9/6/14	590
16/6/14	565
23/6/14	561.2
30/6/14	592.14
7/7/14	514.12
14/7/14	500.84
21/7/14	565.93
28/7/14	587.76
4/8/14	484.97
11/8/14	443
18/8/14	410.53
25/8/14	437.92
1/9/14	462.43
8/9/14	324.44
15/9/14	360.15
22/9/14	253.36
29/9/14	381.64
6/10/14	385.55
13/10/14	349.98
20/10/14	319.9
27/10/14	340.98
3/11/14	363.96
10/11/14	348.09
17/11/14	371.5
24/11/14	376
1/12/14	319.55
8/12/14	334.97
15/12/14	343.46
22/12/14	262.8
29/12/14	250.09
5/1/15	190.02
12/1/15	380.51
19/1/15	189.48
26/1/15	209.59
2/2/15	223.9
9/2/15	223.5
16/2/15	254.85
23/2/15	251.34
2/3/15	305.86
9/3/15	249.82
16/3/15	280
23/3/15	220.56
30/3/15	279.94
6/4/15	265
13/4/15	200
20/4/15	224.68
27/4/15	195.91
4/5/15	245.03
11/5/15	227.36
18/5/15	269.69
25/5/15	228.8
1/6/15	220.5
8/6/15	212.87
15/6/15	225.62
22/6/15	262.18
29/6/15	343.58
6/7/15	312.15
13/7/15	301.96
20/7/15	315
27/7/15	262.04
3/8/15	229.08
10/8/15	257.53
17/8/15	220.4
24/8/15	249.46
31/8/15	230.8
7/9/15	223.27
14/9/15	246.48
21/9/15	250.66
28/9/15	239.59
5/10/15	273.53
12/10/15	300.01
19/10/15	377.69
26/10/15	451.39
2/11/15	371.79
9/11/15	376.89
16/11/15	418.39
23/11/15	440.58
30/11/15	505.46
7/12/15	516.24
14/12/15	481.21
21/12/15	482.38
28/12/15	542.2
4/1/16	454.28
11/1/16	473.92
18/1/16	432.58
25/1/16	429.39
1/2/16	467.05
8/2/16	509.61
15/2/16	506.68
22/2/16	448.07
29/2/16	443.69
7/3/16	484.58
14/3/16	489.97
21/3/16	485.82
28/3/16	455.66
4/4/16	474.93
11/4/16	516.19
18/4/16	488.28
25/4/16	555.87
2/5/16	542.67
9/5/16	512.75
16/5/16	601.27
23/5/16	688.69
30/5/16	803.09
6/6/16	953.05
13/6/16	805.65
20/6/16	797.08
27/6/16	771.54
4/7/16	795.01
11/7/16	793.52
18/7/16	723.18
25/7/16	687.93
1/8/16	650.5
8/8/16	660
15/8/16	670
22/8/16	715.6
29/8/16	714
5/9/16	734.99
12/9/16	686.2
19/9/16	719.42
26/9/16	715.57
3/10/16	754
10/10/16	761.02
17/10/16	825
24/10/16	825.83
31/10/16	831.9
7/11/16	900.52
14/11/16	902.97
21/11/16	924.27
28/11/16	975.2
5/12/16	1006.2
12/12/16	1135.94
19/12/16	1281.4
26/12/16	1144.41
2/1/17	995.16
9/1/17	1123.2
16/1/17	1138.34
23/1/17	1247.74
30/1/17	1241.48
6/2/17	1275.95
13/2/17	1453.46
20/2/17	1590.27
27/2/17	1549.1
6/3/17	1262.27
13/3/17	1177.61
20/3/17	1372.88
27/3/17	1512.83
3/4/17	1488.75
10/4/17	1583.46
17/4/17	1681.71
24/4/17	2096.67
1/5/17	2495.07
8/5/17	2760.85
15/5/17	2994.79
22/5/17	3393.27
29/5/17	3789.46
5/6/17	3488.86
12/6/17	3403.31
19/6/17	3242.76
26/6/17	3315.51
3/7/17	2410
10/7/17	3441.5
17/7/17	3429.74
24/7/17	3960.53
31/7/17	5218.14
7/8/17	5198.76
14/8/17	5520
21/8/17	5918.4
28/8/17	5219.46
4/9/17	4493.05
11/9/17	4525.38
18/9/17	5465.36
25/9/17	5787.35
2/10/17	7126.76
9/10/17	7613.93
16/10/17	7918.65
23/10/17	9592.39
30/10/17	7824.89
6/11/17	10593.55
13/11/17	12197.99
20/11/17	14924.19
27/11/17	21084.87
4/12/17	25886.55
11/12/17	18839.79
18/12/17	18950.74
25/12/17	22762.21
1/1/18	18941.51
8/1/18	15048.37
15/1/18	14345.12
22/1/18	10125.82
29/1/18	10282.72
5/2/18	13238.45
12/2/18	12200.72
19/2/18	14663.94
26/2/18	12043.73
5/3/18	10546.88
12/3/18	10939.19
19/3/18	8735.98
26/3/18	9030.39
2/4/18	10554.32
9/4/18	11257.21
16/4/18	12332.76
23/4/18	12582.62
30/4/18	11460.03
7/5/18	11218.46
14/5/18	9652.02
21/5/18	10133.1
28/5/18	8856.31
4/6/18	8617.19
11/6/18	8152.91
18/6/18	8389.05
25/6/18	8853.63
2/7/18	8455.52
9/7/18	9847.28
16/7/18	11014.06
23/7/18	9459.81
30/7/18	8619.77
6/8/18	8820.44
13/8/18	9072.49
20/8/18	9981.22
27/8/18	8702.43
3/9/18	8958.83
10/9/18	9018.22
17/9/18	9039.68
24/9/18	9164.69
1/10/18	8635.74
8/10/18	8905.48
15/10/18	8919.61
22/10/18	8808.97
29/10/18	8741.39
5/11/18	7479.24
12/11/18	5335.57
19/11/18	5486.65
26/11/18	4814.89
3/12/18	4340.44
10/12/18	5496.18
17/12/18	5356.26
24/12/18	5586.6
31/12/18	4808.14
7/1/19	4862.34
14/1/19	4842.09
21/1/19	4634.24
28/1/19	5032.33
4/2/19	4983.2
11/2/19	5113.99
18/2/19	5240.09
25/2/19	5455.14
4/3/19	5526.45
11/3/19	5517.53
18/3/19	5638.09
25/3/19	7153.71
1/4/19	7114.66
8/4/19	7337.26
15/4/19	7305.25
22/4/19	8020.41
29/4/19	9862.31
6/5/19	11784.94
13/5/19	12517.35
20/5/19	12506.94
27/5/19	10883.83
3/6/19	12861.26
10/6/19	15472.87
17/6/19	15080.16
24/6/19	16268.05
1/7/19	14557.08
8/7/19	14957.73
15/7/19	13791.59
22/7/19	16032.89
29/7/19	16937.56
5/8/19	15248.79
12/8/19

Answer 1

Step 1 - Put the data in data in excel

Step 2 -Find the mean and standard deviation for the weekly return

Step 3 - Find the zscore.

Step 4 - If observe the zscore the min value is -0.73 and the max value is 4.52

Step 5 - We create a bin starting from -0.72 and increasing it by 0.05.

Step 6 - Under the Data tab, go Data Analysis and select histogram

Step 7 - Update the values as shown

The histogram is generated.

If see it carefully, we see three normal distribution.
This the data is for about 4 years and the stock has multiple up and down trend. This is clearly from the time series plot.

Hence if we see it year wise then the distribution will be defined as normal distribution.