Find the frequency of each bin

The next step is to count how many times historical returns fall into a specific bin, that is, to identify the frequency of each bin.

For example, if a bin includes returns larger than or equal to 2% and smaller than 3%, to get the frequency you have to count the number of returns that meet these criteria.

To do so, you can use the function COUNTIFS() with two conditions: historical returns larger than or equal to the left boundary of the bin (first condition) and smaller than the right boundary of the bin (second condition). Recall that to write a logical condition, include it within quotation marks “… ” and if necessary, use the concatenation operator & (for example, “>=”&G7 means larger than or equal to cell G7).