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Hi, can you solve this question manually ? not in excel MAMA enterprise is a global information technology and communications company has seen the value

Hi, can you solve this question manually ? not in excel

MAMA enterprise is a global information technology and communications company has seen the value of its common stock rise substantially in recent years. A stock analyst would like to use simulation to predict the stock prices of this company for an extended period. Based on historical data, the stock analyst has developed the following probability distribution for the movement of MAMA stock prices per day:

Stock Price Movement

Probability

Increase

0.45

Same

0.30

Decrease

0.25

The analyst has also developed the following probability distributions for the amount of the increases or decreases in the stock price per day:

Stock Price Change

Probability

1/8

Increase

Decrease

0.40

0.12

1/4

0.17

0.15

3/8

0.12

0.18

1/2

0.10

0.21

5/8

0.08

0.14

3/4

0.07

0.10

7/8

0.04

0.05

1

0.02

0.05

The price of the stock is currently 62.

Develop a Monte Carlo simulation model to track the stock price of MAMA stock, and simulate for 25 days. Indicate the new stock price at the end of the 25 days. How would this model be expanded to conduct a complete simulation of 1 years stock price movement?

Use the following random numbers:

RN 1

76 47 25 08 76 56 31 96 88 14 77 63 06 46 96 55 50 29 58 51 04 86 17 33 70

RN 2

23 79 15 58 11 31 10 54 24 23 66 87 49 66 09 81 95 92 67 24 76 64 02 53 68 23

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