1.
There is one card that is a king of spade, the probability is 1/52
There are 13 cards in spade out of 52 cards, the probability is 13/52 = 1/4
There are 12 cards for a jack, a queen, or a king out of 52 cards,
the probability is 12/52 = 3/13
Rule o

FNCE 6290 Quantitative Methods for Finance
Yufeng Han
Lecture 4
Statistical Estimation and Testing
HOMEWORK #4
Problem I:
1. If we collect 252 observations from the monthly returns on IYY described in
Lecture 3 Problem 2, what is the sampling distribution

FNCE 6290 Quantitative Methods For Finance
Yufeng Han
Lecture 4
Statistical Inference - Estimation and Testing
Exercise 1.
Use Stata/JMP to compute the sample mean, variance, skewness and kurtosis of the
return on Ford stock, and the covariance & correlat

FNCE 6290 Quantitative Methods for Finance
Yufeng Han
Lecture 4
Statistical Inference - Estimation and Testing
1. From Population to Sample
A distribution can be completely determined by its moments (such as mean and
variance). However, these moments are

FNCE 6290 Quantitative Methods for Finance
Yufeng Han
Lecture 1
Introduction
1. A Motivational Example Why Is It Important to Use Statistics and
Econometrics in Finance?
Lets look at the price and return of the S&P 500 composite index over its whole
histo