Using R Script

The data set contains two different currency exchange rates in terms of the US dollar: Mexican peso (MXN) and Japanese Yen (JPY). Both data are daily closing rates and are transformed to daily logarithmic returns.

1. What is the distribution of the MXN? Fit a continuous distribution to the data and use the K-S test as goodness-of-fit criteria.
2. What is the distribution of the JPY? Fit a continuous distribution to the data and use the K-S test as goodness-of-fit criteria.
3. In finance, it is common to model the exchange rate data with a Normal distribution. Do your findings support this practice? What characteristics do you observe in the two data sets?

MXP log-return	YEN log-return
0	0
-0.000479314	0.011803695
0.005752815	0.002747137
-9.9223E-05	0.003962277
0.00014175	0.01075979
0.00366886	0.002795616
-0.005061865	-0.001573496
-0.002205946	0.002098545
0.005041218	0.001050926
-0.001135074	-0.002275613
0.001561059	-0.0047968
0.003020226	-0.007972658
-0.003484068	0.005192344
0.000961054	0.00173679
0.004961965	-0.002474013
-0.001659894	0.006218358
0.000922351	-0.000174467
0.000975575	-0.009721877
-0.000423659	-0.00293268
0.004359404	-0.007294291
0.002273082	-0.005967368
-0.0014458	0.005027277
0.002222223	-0.006131593
-0.00463998	-0.005503358
-0.002678501	-0.005976952
0.004991016	0.002857745
-0.002665611	0.006332876
-0.004678655	-0.004395054
0.003925165	4.21683E-05