The Following Frequency Distribution Shows the Monthly Stock Returns for Home

question 17

Multiple Choice

The following frequency distribution shows the monthly stock returns for Home Depot for the years 2003 through 2007. Over the time period,the following summary statistics are provided: Mean = 0.31%,Standard deviation = 6.49%,Skewness = 0.15,and Kurtosis = 0.38.At the 5% confidence level,which of the following is the correct conclusion for this goodness-of-fit test for normality?

• A) Reject the null hypothesis;conclude that monthly stock returnsare normally distributed with mean 0.31% and standard deviation 6.49%.
• B) Reject the null hypothesis;conclude that monthly stock returnsare not normally distributed with mean 0.31% and standard deviation 6.49%.
• C) Do not reject the null hypothesis;conclude that monthly stock returnsare normally distributedwith mean 0.31% and standard deviation 6.49%
• D) Do not reject the null hypothesis;conclude that monthly stock returnsare not normally distributed with mean 0.31% and standard deviation 6.49%.

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