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1. Exercises 1.57 & 1.58. Stock performance. Page 46
How well have stocks done over the past generation? The Standard & Poor’s 500 stock index describes the average performance of the stocks of 500 leading companies. Because each return is weighted by the total market value of each companys stock, the index emphasizes larger companies. The file ex01 57.txt contains the real (that is, adjusted for the changing buying power of the dollar) returns on the S&P 500 for the years from 1971 to 2003.
(a) Make a histogram of the real returns. Describe the shape of the distribution.
Answer) The Histogram for the real Returns, of Standard and Poor’s stock Index can be plotted using the following “R” commands:
>table table
Please refer to the following screenshot:

Once the above command is executed, we can attach the table “table” using the following attach command:
>attach (table)
Please Refer to the following screenshot: 1. Exercises 1.57 & 1.58. Stock performance. Page 46
How well have stocks done over the past generation? The Standard & Poor’s 500 stock index describes the average performance of the stocks of 500 leading companies. Because each return is weighted by the total market value of each companys stock, the index emphasizes larger companies. The file ex01 57.txt contains the real (that is, adjusted for the changing buying power of the dollar) returns on the S&P 500 for the years from 1971 to 2003.
(a) Make a histogram of the real returns. Describe the shape of the distribution.
Answer) The Histogram for the real Returns, of Standard and Poor’s stock Index can be plotted using the following “R” commands:
>table table
Please refer to the following screenshot:

Once the above command is executed, we can attach the table “table” using the following attach command:
>attach (table)
Please Refer to the following screenshot:

1. Exercises 1.57 & 1.58. Stock performance. Page 46
How well have stocks done over the past generation?

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