The table below gives the annual total returns on the MSCI Germany Index from 1993 to 2002. The returns are in the local currency. Use the information in this table to answer Questions 5-10.
MSCI Germany Index Total Returns, 1993-2002
Year........................................Return (%)
1993........................................46.21
1994........................................−6.18
1995........................................8.04
1996........................................22.87
1997........................................45.90
1998........................................20.32
1999........................................41.20
2000........................................−9.53
2001........................................−17.75
2002........................................−43.06
To describe the degree to which the distribution may depart from normality, perform the following:
A. Calculate the skewness.
B. Explain the finding for skewness in terms of the location of the median and mean returns.
C. Calculate excess kurtosis.
D. Contrast the distribution of annual returns on the MSCI Germany Index to a normal distribution model for returns.