Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Historical Price MRK 10/19/2022 93.26 10/20/2022 92.94 10/21/2022 95.67 10/24/2022 97.37 10/25/2022 97.71 10/26/2022 98.41 10/27/2022 99.74 10/28/2022 100.77 10/31/2022 101.2 11/1/2022 99.76 11/2/2022 99.4

Historical Price MRK
10/19/2022 93.26
10/20/2022 92.94
10/21/2022 95.67
10/24/2022 97.37
10/25/2022 97.71
10/26/2022 98.41
10/27/2022 99.74
10/28/2022 100.77
10/31/2022 101.2
11/1/2022 99.76
11/2/2022 99.4
11/3/2022 98.75
11/4/2022 99.2
11/7/2022 100.07
11/8/2022 101.5
11/9/2022 101.59
11/10/2022 101.89
11/11/2022 97.96
11/14/2022 100.35
11/15/2022 99.6
11/16/2022 99.93
11/17/2022 102.31
11/18/2022 104.23
11/21/2022 105.61
11/22/2022 106.9
11/23/2022 106.82
11/25/2022 107.5
11/28/2022 108.45
11/29/2022 108.84
11/30/2022 110.12

Find the daily log return for the stock

Find the stock volatility?

Assume the last price collected is S0, simulate the stock price in 30 days., u is the annual return (normally distributed on [0.01, 0.025] and E is a random variable (normally distributed with mean 0 and standard deviation1)

What us the mean price on day 30?

What is the probability S30 will be at least 10% higher than S0?

What is the probability S30 will be less that S0?

Find a 95% confidence interval for the mean price on day 30

Find the 75-th percentile for S30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd edition

9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828

Students also viewed these Finance questions

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago