Price changes of shares of Ralph Inc. have been recorded over the past 100 days. The frequency
Question:
Price changes of shares of Ralph Inc. have been recorded over the past 100 days. The frequency distribution is as follows:
Price Change Probability
- 1/2 .......0.06
- 3/8 .......0.08
- 1/4 .......0.10
- 1/8 .......0.12
0 .......0.20
1/8 .......0.24
1/4 .......0.08
3/8 .......0.06
1/2 .......0.06
If the current price of Ralph stock is $30, use the following computer generated random numbers for simulation:
Day RN___
1 .......0.089298419
2 .......0.917799699
3 ....... 0.353414983
4 .......0.226025249
5 .......0.368686094
6 .......0.079393032
7 .......0.663184808
8 .......0.783597511
9 .......0.674174677
10 .......0.050971983
What is the stock price at the end of day 10?
a. $29.125
b. $29.750
c. $30.250
d. $32.000
e. None of the above
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Step by Step Answer:
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase