Use Norm.S.Inv(Rand( )) to produce a simulation of monthly stock prices, as illustrated below. 1 SIMULATING A
Question:
Use Norm.S.Inv(Rand( )) to produce a simulation of monthly stock prices, as illustrated below.
Transcribed Image Text:
1 SIMULATING A LOGNORMAL PRICE PROCESS 2 Initial stock price 3 Mean return, m 4 Return sigma, s 5 Delta t 12 12% 35% 8% <-- =1/12 Random Stock Month price 12 7 number 1 0.3021 12.4963 <-- =C8*EXP($B$3*$B$5+$B$4*SQRT($B$5)*B9) 0.9810 0.1774 -1.1420 10 2 13.9371 11 12 13 3 14.3318 16 4 12.8982 15 0.5932 13.8325 14 0.7335 15.0463 14 -1.7615 0.6826 0.4070 15 12.7198 13 16 8 13.7649 17 14.4869 12 18 10 -0.7262 13.5974 11 -0.5846| 0.9055 19 11 12.9464 20 12 14.3293 10 21 9 22 8 23 Cell B20 contains formula 24 0 1 2 3 4 5 6 7 8 9 10 11 12 =NORMSINV(RAND()) 25 -- - - - - -
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (6 reviews)
Sure the image you sent shows a table that simulates monthly stock prices using the Excel functions ...View the full answer
Answered By
Kennedy Odhiambo
As a professional writer, I have been in the field for over 5 years having worked as a lecture in different tertiary institutions across the world. With this impeccable experience, I assure provision of a good and supporting environment for students to learn.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Monthly stock prices for two competing firms are as follows. a. Calculate the sample mean, the sample variance, and the sample standard deviation for each firms stock price. b. Which firm had the...
-
Below you will find the closing stock prices for eBay over a three-week period. Calculate the simple three-day and five-day moving averages for the stock and graph your results. Are there any...
-
A portion of the monthly stock prices (rounded to the nearest dollar) for Starbucks Corp. and Panera Bread Co. from 2010 to 2013 are reported in the following table. a. State the null and the...
-
Draw an ER model according to the below information. NOTE: Use a word or any website to produce the diagrams. Dont use handwriting. In ERD diagram: 1. Entity: There are 6 Entity in this diagram:...
-
A U.S. pension fund has a domestic portfolio with an expected return of 10 percent and a standard deviation of 12 percent. It also invests in a foreign equity fund that has an expected dollar return...
-
The gross earnings of the factory workers for Vargas Company during the month of January are $66,000. The employers payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by...
-
Cubs Incorporated manufactures a product with a selling price of $60 per unit. Units and monthly cost data follow: Cubs Inc. pays all bills in the month incurred. All sales are on account with 50...
-
A diffraction grating has 4 200 rulings/cm. On a screen 2.00 m from the grating, it is found that for a particular order m, the maxima corresponding to two closely spaced wavelengths of sodium (589.0...
-
QUESTION THREE: (25 marks) Dana and Dalal have a partnership agreement which includes the following provisions regarding sharing net income and net loss: 1. Since Dana will work only part time in the...
-
John is a waiter at a local diner. The diner has a policy that tips are to be pooled between the waiters. Accordingly, each night the cash tips are collected, pooled, and divided up between the...
-
The great Indian mathematical genius Ramanujan showed that The n ! indicates the factorial: n! = n*(n - 1) = (n - 2) *...* 2 * 1 0! = 1 Excel?s function Fact computes the factorial. Use this series...
-
Run a few of the lognormal price path simulations. Examine the price pattern for trends. Find one or more of the following technical patterns:support arearesistance areauptrend/downtrendhead and...
-
A cell phone battery is rated at 3.85 V and can store 10.78 watt-hours of energy. (a) How much average current can it deliver over a period of 3 hours if it is fully discharged at the end of that...
-
A Layer 3or Network layer IP address has two parts, list and explain both. Network prefix Host part
-
Explain the following terms: Buzz Marketing Guerilla Marketing 2-When starting up a small venture what are some of the challenges you will probably face? 3-Define the terms dwell rate and dwell...
-
For devices to successfully communicate, a network protocol suite must describe precise requirements and interactions. What do networking protocols define? Explain.
-
During 2020, JAMES Company's income under absorption costing was P 3,600 lower than its income under direct costing. The company sold 10,000 units during the year and its variable costs were P 9 per...
-
How does the cultivation of rhetorical economy enhance the efficacy of persuasive discourse, and what rhetorical devices can rhetoricians deploy to distill their arguments into cogent syllogisms that...
-
Describe various approaches businesses use to enter the international arena.
-
What are some of the possible sources of information about a company that could be used for determining the companys competitive stance?
-
What are the inputs, processing, and outputs of UPSs package tracking system?
-
What technologies are used by UPS? How are these technologies related to UPSs business strategy?
-
What strategic business objectives do UPSs information systems address?
-
Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full...
-
2-1A Dada la siguiente informacin de la Compaia Belmond, Inc., prepare un Balance Sheet y un Income Statement para la fecha de December 31, 2021 Inventory... General and administrative expense......
-
Rory Company has an old machine with a book value of $83,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $109,000. Rory can sell its old machine...
Study smarter with the SolutionInn App