Question: The exercise file for this chapter gives daily returns from 19872012 for the Vanguard Index 500 fund (VFINX). This is a fund that tracks the

The exercise file for this chapter gives daily returns from 1987–2012 for the Vanguard Index 500 fund (VFINX). This is a fund that tracks the S&P 500, but the returns include dividends (as opposed to ∧ GSPC, the index tracker).

• Compute the overall daily return statistics: average and standard deviation.

• Annualize these statistics, assuming that there are 250 days per year.

• Compute the daily and annualized return statistics by year.

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