Problem 1.14 Refer to the weekly 2002 price and return data for GE listed in Tables 1.18 and 1.20. Use a statistical software package to:

(a) Draw the time series plot of the weekly returns of GE stock. Is there any pattern in this time series that an investor can take advantage of ?

(b) Draw the frequency histogram of the weekly returns and comment on its shape. Is it symmetric? skewed left? skewed right?

(c) Comment on the similarities and differences between the graph obtained in part

(b) and the graph displayed in Figure 1.11.

(d) Draw the time series plot of the weekly 2002 prices of GE stock and compare it to its performance in 1999 (Figure 1.1).