Question: Consider the monthly stock returns presented in Table 1.

1. What return is the bottom quintile?
2. What return is the top quintile?
3. Assume that a stock is labeled a "loser" if its return falls below the bottom quintile and a "winner" if its return lies above the top quintile. List the "winner" and "loser" companies.
4. Assume that returns in a population are approximately normally distributed with mean 0.15 and standard deviation 0.1. On this occasion, let us define as "winners" the stocks whose return falls into the highest 9 per cent of the return distribution. What is the level of return above which a stock is considered to be a "winner"?

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