Suppose that data show that a certain stock price is normally distributed with a mean of $150
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Suppose that data show that a certain stock price is normally distributed with a mean of $150 and a variance of 100. Create a simulation to compare the results of the following two strategies over 250 days. You start the year with 1000 shares. With the first strategy , every day the price is below $140 you buy 100 shares, and every day the price is above $160 you sell all the shares you own. With the second strategy, every day the price is below $150 you buy 100 shares, and every day the price is above $160 you sell all the shares you own. The broker charges 5 cents per share traded with a minimum of $35 per transaction.
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