Question: e) Suppose that the continuously compounded monthly returns are normally distributed for your chosen assets. Using the data, estimate the distribution of the simple returns

e) Suppose that the continuously compounded monthly returns are normally distributed for your chosen assets. Using the data, estimate the distribution of the simple returns for the two assets and, for each asset, draw the two return distributions on the same graph. Comment on your results. [10 Marks]

-Simple returns are have a log-normal distribution with mean 0 and variance sigma squared. Once I plot histogram of the log returns of the two stocks, am I just comparing to a normal distibution curve, is the curve adjusted for the sample mean and varainace, do I need to calculate these?

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