K
Hi!
I'm currently doing an investigation into how changes in share prices are distributed. I've collected some data, and have the end of day share prices for 20 different companies since 25th November 2002. I've taken the log of the ratio of the newer share to the previous share price and want to see how this data is distributed. So basically I have 1112 pieces of information and want to see if a distribution is followed.
In my research I have found two arguments; one that share price changes follow a normal distribution and the other that they follow a t-distribution,. I want to test for the existence if these two distributions in my data. How do I do it? :S For the t-distribution, do I need to calculate the degrees of freedom? Because I can't quite remember what to do.
Any help would be much appreciated.
Thanks!
I'm currently doing an investigation into how changes in share prices are distributed. I've collected some data, and have the end of day share prices for 20 different companies since 25th November 2002. I've taken the log of the ratio of the newer share to the previous share price and want to see how this data is distributed. So basically I have 1112 pieces of information and want to see if a distribution is followed.
In my research I have found two arguments; one that share price changes follow a normal distribution and the other that they follow a t-distribution,. I want to test for the existence if these two distributions in my data. How do I do it? :S For the t-distribution, do I need to calculate the degrees of freedom? Because I can't quite remember what to do.
Any help would be much appreciated.
Thanks!