Question: [ 6 points total: 1 point for each part ] Consider weekly data on closing prices of the SP 5 0 0 index from 1

[6 points total: 1 point for each part] Consider weekly data on closing prices of the SP500 index from 1/1/1960 to 4/4/2025. The data is in the attached Excel file.
a. Generate a series of weekly rates of return. Then Compute the mean and the standard deviation of the weekly rates of return over the entire sample period, as well as the 95% and 99% confidence intervals. How many standard deviations away from the mean is the rate of return of the week ending on 44?2025?
b. Plot a histogram of the weekly rates of return, with 100 bins of equal size.
c. Compute the arithmetic annual rate of return of the SP500 price. This is the so called annual percentage rate (APR):
APR=n**r(weekly)
where n is the number of weeks in a year (number of compounding periods in a year) and week ?y is the average weekly rate of return over the sample. ?1
d. Compute the geometric annual rate of return of the SP500 index. This is the so called effective annual rate (EAR):
I EAR=[1r(T)]1T, where
[ 6 points total: 1 point for each part ]

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