71. Returns on common stocks The return on a stock is the change in its market price plus any dividend payments made. Return is usually expressed as a percent of the beginning price. The figure shows a histogram of the distribution of monthly returns for the U.S. stock market over a 273-month period.33 Number of months 60 40 20 -25 -20 -15 -10 -5 0 5 10 15 Monthly percent return on common stocks Starnes & Tabor, The Practice of Statistics, 6e, © 2018 Bedford, Freeman & Worth High School Publishers a. Describe the overall shape of the distribution of monthly returns. b. What is the approximate center of this distribution? c. Explain why you cannot find the exact value for the minimum return. Between what two values does it lie? d. A return less than 0 means that stocks lost value in that month. About what percent of all months had returns less than 0?

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The return on a stock is the change in its market price plus any dividend payments made. Return is usually expressed as a percent of the beginning price. The figure shows a histogram of the distribution of monthly returns for the U.S. stock market over a 273-month period. a. Describe the overall shape of the distribution of monthly returns. b. What is the approximate center of this distribution? c. Explain why you cannot find the exact value for the minimum return. Between what two values does it lie? d. A return less than 0 means that the stocks lost value in that month. About what percent of all months had returns less than 0?

1)
71. Returns on common stocks The return on a stock is the change in its market
price plus any dividend payments made. Return is usually expressed as a percent
of the beginning price. The figure shows a histogram of the distribution of
monthly returns for the U.S. stock market over a 273-month period.33
Number of months
80
60
40-
20-
-25 -20 -15 -10 -5 0 5 10 15
Monthly percent return on common stocks
Starnes & Tabor, The Practice of Statistics, 6e, © 2018 Bedford,
Freeman & Worth High School Publishers
a. Describe the overall shape of the distribution of monthly returns.
b. What is the approximate center of this distribution?
c. Explain why you cannot find the exact value for the minimum return. Between
what two values does it lie?
d. A return less than 0 means that stocks lost value in that month. About what
percent of all months had returns less than 0?
Transcribed Image Text:1) 71. Returns on common stocks The return on a stock is the change in its market price plus any dividend payments made. Return is usually expressed as a percent of the beginning price. The figure shows a histogram of the distribution of monthly returns for the U.S. stock market over a 273-month period.33 Number of months 80 60 40- 20- -25 -20 -15 -10 -5 0 5 10 15 Monthly percent return on common stocks Starnes & Tabor, The Practice of Statistics, 6e, © 2018 Bedford, Freeman & Worth High School Publishers a. Describe the overall shape of the distribution of monthly returns. b. What is the approximate center of this distribution? c. Explain why you cannot find the exact value for the minimum return. Between what two values does it lie? d. A return less than 0 means that stocks lost value in that month. About what percent of all months had returns less than 0?
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