The daily changes in the closing price of stock follow a random walk. That is, these daily events are independent of each other and move upward or downward in a random matter and can be approximated...

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The daily changes in the closing price of stock follow a random walk. That is, these daily events are independent of each other and move upward or downward in a random matter and can be approximated by a normal distribution. Let's test this theory.


Use either a newspaper, or the Internet to select one company traded on the NYSE. Record the daily closing stock price of your company for the six past consecutive weeks (so that you have 30 values). Decide whether the your 2 data sets are normally distributed by creating a histogram or a boxplot. Please attach your histogram or boxplot as a Word document in your post.Please do NOT answer the discussion in your attachment;answer on the discussion board.
Discuss your results. What can you say about the stock with respect to daily closing prices and daily changes in closing prices. Which, if any, of the data sets are approximately normally distributed?

Answered Same DayApr 16, 2021

Answer To: The daily changes in the closing price of stock follow a random walk. That is, these daily events...

Shakeel answered on Apr 17 2021
138 Votes
The daily closing price of past six week i.e.30 data set is taken for Apple stock. The histogram of daily closing price and daily price change are as follows:
Both the graphs don’t show the pattern of normal distribution, although, daily price shows little normality in comparison to daily closing price of stock.
Adjusted Closing...
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