Rates of Return of Stocks Stocks may be categorized by industry. The following data

Chapter 2, Problem 21

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Rates of Return of Stocks Stocks may be categorized by industry. The following data represent the 5-year rates of return for a sample of consumer goods stocks and energy stocks ending October 20, 2010.Consumer Goods5.51 11.42 18.09 10.26 5.8226.38 8.33 2.57 12.07 -0.374.73 24.6 -1.54 9.31 7.4010.69 14.84 0.66 6.64 -14.7410.84 15.18 8.08 11.34 21.431.53 7.00 1.63 -7.48 3.4514.73 8.62 -0.60 -1.72 36.36 Energy3.50 2.68 4.43 3.59 20.7716.04 15.88 9.09 3.69 14.9915.82 3.99 14.34 17.16 -4.5129.97 5.95 -1.29 - 9.04 11.7711.68 6.82 12.22 10.69 16.678.92 2.76 14.76 2.39 -3.295.71 -2.55 6.06 7.39 3.90Source: Morningstar (a) Construct a frequency distribution for each industry. Tomake an easy comparison, create each frequency distributionso that the lower class limit of the first class is -20 and theclass width is 10.(b) Construct a relative frequency distribution for each industry.(c) On the same graph, construct a relative frequency polygonfor the two industries.(d) On the same graph, construct a relative frequency ogive forthe two industries.(e) Which industry appears to have the better performance forthe 5-year period? Support your opinion.