Exercise

# Testing normality for longer time horizons

As returns are added together over longer time periods, a **central limit** effect takes place and returns tend to become more normal.

In this exercise, you will use aggregation functions that you learned in the first chapter to aggregate the data in `djx_d`

, containing the daily log-returns for 29 of the Dow Jones stocks for the period 2008-2011. Then, you'll apply the Jarque-Bera test to the daily, weekly and monthly returns. `djx_d`

is loaded in your workspace.

Instructions

**100 XP**

- Calculate weekly and monthly log-returns of
`djx_d`

and assign to`djx_w`

and`djx_m`

, respectively. - Fill in
`apply()`

to calculate the p-value of the Jarque-Bera test for each of the Dow Jones daily return series in`djx_d`

. - Do the same for the weekly equity returns in
`djx_w`

. - Do the same for the monthly equity returns in
`djx_m`

.