The data file assignment_1.txt contains stock returns for ge (general electric), vw (value-weighted market returns), ew (equal-weighted market returns), and sp (Standard Poor composite index). The time span of the data ranges from Jan 1940 to Sept 2011. Please do following work within R/RStudio environment.

(a) Compute the sample mean, standard deviation, skewness, excess kurtosis, minimum, and maximum of each simple return series.

(b) Transform the simple returns to log returns and redo part (a).

(c) Test the null hypothesis that the mean of the log returns of ge stock is zero. Use 5% significance level to draw your conclusion

1. Suppose that the daily simple returns of a stock in one week were -0.4%, 0.8%, 1.3%, -1.5%, and 0.9%. What are the corresponding daily log returns? What is the weekly simple return of the stock?