Convert frequencies into relative frequencies
The frequencies indicate how many times historical returns fall into a given bin. To have a standardized measure, useful in terms of both comparison and interpretation, you can use relative frequencies. They are frequencies expressed in percentage, where 100% corresponds to the total amount of historical returns.
Your next task is to convert the frequencies of ABC historical returns into relative frequencies.
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演習の手順
In
I37, sum up the frequencies (if your computations are correct they should be equal to the total number of returns).In
J7:J36, divide each frequency by the total number to obtain a measure in relative terms.
