G Choose one company from any industry. The firm should be publicly traded at Ne

G
Choose one company from any industry. The firm should be publicly traded at New York Stock Exchange (NYSE) or NASDAQ stock market. Go to Finance.Yahoo.Com and download historical daily stock price data (1001 days) for the company of your choice. Make sure that you work with the Adjusted Closing Price since it has been adjusted for dividends and stock splits to produce a consistent data series.
Compute the daily geometric (continuously compounded) returns for the company you selected.
Compute the first four moments of your daily stock return distribution using excel functions.Mean
Standard deviation
Skewness
Kurtosis
Construct a frequency distribution for your company’s stock return series. When you select classes (bins or discrete intervals), use the Standard Deviation () running from
Transform your frequency distribution to a probability density function, pdf.Provide both a table of probability density function and its chart.
Using the pdf that you identified above, construct the cumulative distribution function (cdf) for your stock return series and present it in both tabular and chart forms.
Does the chart of your pdf resemble a normal distribution?Test your distribution against the normal usingZ-test for skewness at 5% significance level
Z-test for kurtosis at 5% significance level
Jarque-Bera joint test for normality (Chi-Square test with 95% confidence level and 2 degrees of freedom)
Determine if your daily return series show first order autocorrelation by estimating the first order autocorrelation coefficient. This should be done in excel and your regression results should be presented.Do your results indicate that stock returns for your company demonstrate persistence or mean reversion?
Compute the four-day returns and four-day volatility for the return distribution.
-6σto +6σ such as -6σ,-5.5σ, -5σ, -4.5σ,…,0,…, +5.5σ, +6σ. In some cases, you may need further ranges from -11σ to +11σ or more if your company’s return series are more volatile. Provide a histogram of frequency distribution.
Which way is it skewed?
Does it have fat or thin tails?
For the remainder of the project please view the attached word document to fill out as well.