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.

2. Date	BIT
   11/3/13	52.06
   18/3/13	53.84
   25/3/13	99.99
   1/4/13	139.23
   8/4/13	113.07
   15/4/13	123.93
   22/4/13	141.36
   29/4/13	126.5
   6/5/13	120.39
   13/5/13	125.5
   20/5/13	142.52
   27/5/13	137.88
   3/6/13	115.66
   10/6/13	120.98
   17/6/13	125.28
   24/6/13	111.97
   1/7/13	97.54
   8/7/13	114.95
   15/7/13	96.5
   22/7/13	92
   29/7/13	99.95
   5/8/13	125.49
   12/8/13	104.1
   19/8/13	109.53
   26/8/13	158.75
   2/9/13	136.12
   9/9/13	147.87
   16/9/13	143.09
   23/9/13	142.08
   30/9/13	140.24
   7/10/13	151.77
   14/10/13	193.52
   21/10/13	213.89
   28/10/13	233.5
   4/11/13	331.05
   11/11/13	547.08
   18/11/13	974.55
   25/11/13	1191.99
   2/12/13	1016.27
   9/12/13	1027.82
   16/12/13	781.78
   23/12/13	889.11
   30/12/13	999
   6/1/14	1037.92
   13/1/14	977.1
   20/1/14	1000
   27/1/14	928.99
   3/2/14	850
   10/2/14	740
   17/2/14	728.37
   24/2/14	650
   3/3/14	674.73
   10/3/14	669.53
   17/3/14	646.83
   24/3/14	560
   31/3/14	518.31
   7/4/14	475
   14/4/14	567.54
   21/4/14	469
   28/4/14	502.16
   5/5/14	456
   12/5/14	510.9
   19/5/14	648.66
   26/5/14	752.71
   2/6/14	750
   9/6/14	671.71
   16/6/14	690
   23/6/14	665
   30/6/14	661.2
   7/7/14	692.14
   14/7/14	614.12
   21/7/14	600.84
   28/7/14	665.93
   4/8/14	687.76
   11/8/14	584.97
   18/8/14	543
   25/8/14	510.53
   1/9/14	537.92
   8/9/14	562.43
   15/9/14	424.44
   22/9/14	460.15
   29/9/14	353.36
   6/10/14	481.64
   13/10/14	485.55
   20/10/14	449.98
   27/10/14	419.9
   3/11/14	440.98
   10/11/14	463.96
   17/11/14	448.09
   24/11/14	471.5
   1/12/14	476
   8/12/14	419.55
   15/12/14	434.97
   22/12/14	443.46
   29/12/14	362.8
   5/1/15	350.09
   12/1/15	290.02
   19/1/15	480.51
   26/1/15	289.48
   2/2/15	309.59
   9/2/15	323.9
   16/2/15	323.5
   23/2/15	354.85
   2/3/15	351.34
   9/3/15	405.86
   16/3/15	349.82
   23/3/15	380
   30/3/15	320.56
   6/4/15	379.94
   13/4/15	365
   20/4/15	300
   27/4/15	324.68
   4/5/15	295.91
   11/5/15	345.03
   18/5/15	327.36
   25/5/15	369.69
   1/6/15	328.8
   8/6/15	320.5
   15/6/15	312.87
   22/6/15	325.62
   29/6/15	362.18
   6/7/15	443.58
   13/7/15	412.15
   20/7/15	401.96
   27/7/15	415
   3/8/15	362.04
   10/8/15	329.08
   17/8/15	357.53
   24/8/15	320.4
   31/8/15	349.46
   7/9/15	330.8
   14/9/15	323.27
   21/9/15	346.48
   28/9/15	350.66
   5/10/15	339.59
   12/10/15	373.53
   19/10/15	400.01
   26/10/15	477.69
   2/11/15	551.39
   9/11/15	471.79
   16/11/15	476.89
   23/11/15	518.39
   30/11/15	540.58
   7/12/15	605.46
   14/12/15	616.24
   21/12/15	581.21
   28/12/15	582.38
   4/1/16	642.2
   11/1/16	554.28
   18/1/16	573.92
   25/1/16	532.58
   1/2/16	529.39
   8/2/16	567.05
   15/2/16	609.61
   22/2/16	606.68
   29/2/16	548.07
   7/3/16	543.69
   14/3/16	584.58
   21/3/16	589.97
   28/3/16	585.82
   4/4/16	555.66
   11/4/16	574.93
   18/4/16	616.19
   25/4/16	588.28
   2/5/16	655.87
   9/5/16	642.67
   16/5/16	612.75
   23/5/16	701.27
   30/5/16	788.69
   6/6/16	903.09
   13/6/16	1053.05
   20/6/16	905.65
   27/6/16	897.08
   4/7/16	871.54
   11/7/16	895.01
   18/7/16	893.52
   25/7/16	823.18
   1/8/16	787.93
   8/8/16	750.5
   15/8/16	760
   22/8/16	770
   29/8/16	815.6
   5/9/16	814
   12/9/16	834.99
   19/9/16	786.2
   26/9/16	819.42
   3/10/16	815.57
   10/10/16	854
   17/10/16	861.02
   24/10/16	925
   31/10/16	925.83
   7/11/16	931.9
   14/11/16	1000.52
   21/11/16	1002.97
   28/11/16	1024.27
   5/12/16	1075.2
   12/12/16	1106.2
   19/12/16	1235.94
   26/12/16	1381.4
   2/1/17	1244.41
   9/1/17	1095.16
   16/1/17	1223.2
   23/1/17	1238.34
   30/1/17	1347.74
   6/2/17	1341.48
   13/2/17	1375.95
   20/2/17	1553.46
   27/2/17	1690.27
   6/3/17	1649.1
   13/3/17	1362.27
   20/3/17	1277.61
   27/3/17	1472.88
   3/4/17	1612.83
   10/4/17	1588.75
   17/4/17	1683.46
   24/4/17	1781.71
   1/5/17	2196.67
   8/5/17	2595.07
   15/5/17	2860.85
   22/5/17	3094.79
   29/5/17	3493.27
   5/6/17	3889.46
   12/6/17	3588.86
   19/6/17	3503.31
   26/6/17	3342.76
   3/7/17	3415.51
   10/7/17	2510
   17/7/17	3541.5
   24/7/17	3529.74
   31/7/17	4060.53
   7/8/17	5318.14
   14/8/17	5298.76
   21/8/17	5620
   28/8/17	6018.4
   4/9/17	5319.46
   11/9/17	4593.05
   18/9/17	4625.38
   25/9/17	5565.36
   2/10/17	5887.35
   9/10/17	7226.76
   16/10/17	7713.93
   23/10/17	8018.65
   30/10/17	9692.39
   6/11/17	7924.89
   13/11/17	10693.55
   20/11/17	12297.99
   27/11/17	15024.19
   4/12/17	21184.87
   11/12/17	25986.55
   18/12/17	18939.79
   25/12/17	19050.74
   1/1/18	22862.21
   8/1/18	19041.51
   15/1/18	15148.37
   22/1/18	14445.12
   29/1/18	10225.82
   5/2/18	10382.72
   12/2/18	13338.45
   19/2/18	12300.72
   26/2/18	14763.94
   5/3/18	12143.73
   12/3/18	10646.88
   19/3/18	11039.19
   26/3/18	8835.98
   2/4/18	9130.39
   9/4/18	10654.32
   16/4/18	11357.21
   23/4/18	12432.76
   30/4/18	12682.62
   7/5/18	11560.03
   14/5/18	11318.46
   21/5/18	9752.02
   28/5/18	10233.1
   4/6/18	8956.31
   11/6/18	8717.19
   18/6/18	8252.91
   25/6/18	8489.05
   2/7/18	8953.63
   9/7/18	8555.52
   16/7/18	9947.28
   23/7/18	11114.06
   30/7/18	9559.81
   6/8/18	8719.77
   13/8/18	8920.44
   20/8/18	9172.49
   27/8/18	10081.22
   3/9/18	8802.43
   10/9/18	9058.83
   17/9/18	9118.22
   24/9/18	9139.68
   1/10/18	9264.69
   8/10/18	8735.74
   15/10/18	9005.48
   22/10/18	9019.61
   29/10/18	8908.97
   5/11/18	8841.39
   12/11/18	7579.24
   19/11/18	5435.57
   26/11/18	5586.65
   3/12/18	4914.89
   10/12/18	4440.44
   17/12/18	5596.18
   24/12/18	5456.26
   31/12/18	5686.6
   7/1/19	4908.14
   14/1/19	4962.34
   21/1/19	4942.09
   28/1/19	4734.24
   4/2/19	5132.33
   11/2/19	5083.2
   18/2/19	5213.99
   25/2/19	5340.09
   4/3/19	5555.14
   11/3/19	5626.45
   18/3/19	5617.53
   25/3/19	5738.09
   1/4/19	7253.71
   8/4/19	7214.66
   15/4/19	7437.26
   22/4/19	7405.25
   29/4/19	8120.41
   6/5/19	9962.31
   13/5/19	11884.94
   20/5/19	12617.35
   27/5/19	12606.94
   3/6/19	10983.83
   10/6/19	12961.26
   17/6/19	15572.87
   24/6/19	15180.16
   1/7/19	16368.05
   8/7/19	14657.08
   15/7/19	15057.73
   22/7/19	13891.59
   29/7/19	16132.89
   5/8/19	17037.56
   12/8/19	15348.79

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.