A stock whose price is $30 has an expected return of 9% and a volatility of 20%.
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Question:
A stock whose price is $30 has an expected return of 9% and a volatility of 20%. In Excel
simulate the stock price path over 5 years using monthly time steps and random samples from
a normal distribution. Chart the simulated stock price path. By hitting F9 observe how the
path changes as the random sample change. Please explain in excel step by step.
Expert Answer:
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