Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

creating a financial model based on the following instructions. The yellow cells are the ones which are intended to be filled in by the end

image text in transcribed

creating a financial model based on the following instructions. The yellow cells are the ones which are intended to be filled in by the end user. What would the generic formula for column (3) be?

Model 1 Instructions 1) Generate 1,000 random variables 2) Convert them to standard normal variables using Norm.s.inv() 3) Convert step 2 output to return estimates using an expected return of 0% and a standard deviation of 22% 4) Assume the one year S\&P 500 futures price is 4300 . Find 1,000 simulated outcomes using output from step 3 5) Count the number of outcomes above 5,000 as a portion of 1,000 simulations (use "countif()") Model 1 Instructions 1) Generate 1,000 random variables 2) Convert them to standard normal variables using Norm.s.inv() 3) Convert step 2 output to return estimates using an expected return of 0% and a standard deviation of 22% 4) Assume the one year S\&P 500 futures price is 4300 . Find 1,000 simulated outcomes using output from step 3 5) Count the number of outcomes above 5,000 as a portion of 1,000 simulations (use "countif()")

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Techniques In Economics And Finance

Authors: Constantin Zopounidis

1st Edition

1613245580, 978-1613245583

More Books

Students also viewed these Finance questions

Question

Discuss communication challenges in a global environment.

Answered: 1 week ago