• NUMERICAL ANSWERS: report only the first 2 decimals (no rounding; if your answer is 2.999 or 2.991 your answer is 2.99)
• CHARACTER ANSWERS: use capital letters
• Excel functions that you need:
  • = AVERAGE()
  • = STDEV()
  • = SKEW()
  • = KURT()
  • = NORM.INV()
  • = NORM.DIST()

Go to Yahoo!Finance and download data at the MONTHLY frequency for the stock"Home Depot Inc" with ticker HD with starting date January 1, 1990 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the price in the previous month). Based on the time series of the stock return, answer the following questions (NB: you should have 319 monthly returns): Calculate the sample mean or average of the stock return: Calculate the sample standard deviation of the stock return: !!! For the questions below, use the values for the mean and std. dev. that you typed above (only the first 2 decimals)!!! Assuming that the returns follow a normal distribution: Calculate the P(return > 3.35): Calculate the P(-15.32 x) = 0.647: Calculate the lower limit of a 99% confidence interval for the population mean: Calculate the test statistic for the null hypothesis that the population mean is equal to 0: Do you reject the null hypothesis that the population mean is equal to 0 against the alternative that it is different from zero at 10% significance level? (type DO NOT REJECT or REJECT in capital letters) Do you reject the null hypothesis that the population mean is larger or equal to 0 against the alternative that it is smaller than zero at 5% significance level? (type DO NOT REJECT or REJECT in capital letters) Go to Yahoo!Finance and download data at the MONTHLY frequency for the stock"Home Depot Inc" with ticker HD with starting date January 1, 1990 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the price in the previous month). Based on the time series of the stock return, answer the following questions (NB: you should have 319 monthly returns): Calculate the sample mean or average of the stock return: Calculate the sample standard deviation of the stock return: !!! For the questions below, use the values for the mean and std. dev. that you typed above (only the first 2 decimals)!!! Assuming that the returns follow a normal distribution: Calculate the P(return > 3.35): Calculate the P(-15.32 x) = 0.647: Calculate the lower limit of a 99% confidence interval for the population mean: Calculate the test statistic for the null hypothesis that the population mean is equal to 0: Do you reject the null hypothesis that the population mean is equal to 0 against the alternative that it is different from zero at 10% significance level? (type DO NOT REJECT or REJECT in capital letters) Do you reject the null hypothesis that the population mean is larger or equal to 0 against the alternative that it is smaller than zero at 5% significance level? (type DO NOT REJECT or REJECT in capital letters)