For the DAX index, state which choice of the degrees-of-freedom parameter gives the best-fitting t-distribution and explain why.
Run the next set of code to create a kernel density estimate and two parametric density estimates, t with 5 degrees of freedom and normal, for the DAX index.
To examine the left and right tails, plot the density estimate two more times, once zooming in on the left tail and then zooming in on the right tail. You can do this by using the xlim parameter of the plot function and changing ylim appropriately. You can also use the adjust parameter in density to smooth the tail estimate more than is done with the default value of adjust.
