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Posted on Aug 28, 2024

Moodle Use MSFT.pdf file provided to you with historical returns from 5/1/2016 to 3/19/2021. Assume current price of MSFTs $231.02/share. Use the bootstrapping approach (that

Moodle Use MSFT.pdf file provided to you with historical returns from 5/1/2016 to 3/19/2021. Assume current price of MSFT\s $231.02/share. Use the bootstrapping approach (that estimates a return on MSFT during each of the next 12 months by assuming that the return during each month is equally likely to be any of the returns for the 60 months listed in MSFT.pdf) to estimate MSFT ending Price in one year Use Data Table to generate 1000 scenarios of MSFT price in one year (i.e. Run Monte Carlo simulations on stock price). PART 1: Estimate the probability that in a year the price of MSFT stock will be at least $350. PART 2: Estimate the probability that in a year the price of MSFT stock will be less than $231.02. oltre Downloads/PROB.MSFT.pdf Date MSFT Adj Glose MSFT 4/1/2016 45,729378 RETURN 5/1/2016 48.599503 0.06276326 6/1/2016 47.24963 0,0277754 7/1/2016 52.337479 0.10768019 8/1/2016 53.057735 0.01376176 9/1/2016 53.518501 0.00868424 10/1/2016 55.674103 0.0402777 11/1/2016 55.990009 0.0056742 12/1/2016 58.126839 0.03816449 1/1/2017 60.474731 0.04039256 2/1/2017 59.848015 0.0103633 3/11/2017 61.980083 0.03562471 4/1/2017 64.42691 0.03947763 5/1/2017 65.725601 0.02015759 6/1/2017 65.241043 0.0073724 7/1/2017 68 809288 0.05469325 8/1/2017 70.768509 0.02847321 91/2017 70.879335 0.00156321 10/1/2017 79.147381 0.1166598 11/1/2017 B008989 0.01190159 12/1/2017 81 802251 002138061 1/1/2018 0584.44 0.11070822 2/1/2018 23672646 -0.011051 3/1/2018 87.69187900220899 4/1/2018 153651 0.03465193 1/2018 465103 005681619 4/1/2018 95.154778 0.00199731 1/1/2018 1023607 007575299 1/1/2018 1394008 0.05891766 9/11/20 130787162 0.02.2010 10/1/2012 10146408100661003 11/1/2018 50781639 DO 12/1/2018 13700 1/1/2018 SEST OSS 2/1/2019 ar 1/2010 A19 074 w 1/1/2018 11 10 5 W E R. T S D F G H Downloads/PROB_MSFT.pdf 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 115.228996 0.05724968 127.598007 0.10734287 120.837059 -0.0529863 131.365234 0.08712704 133.630493 0.01724398 135.189682 0.01166791 136.791 0.01184497 141061111 0.03121632 148.942123 0.05586949 155 688324 0.04529411 168,058472 0.07945456 2/1/2020 2/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 B/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2001 2/1/20 11/2021 3/11/2021 159.943344 -0.0482875 156.123474 0.0238826 177.407196 0.13632621 181.40654 0.0225433 202 023819 011365235 201512848 0.00737056 221 2996 0.10009260 2002997210051424 201.4772 0.033 211020401 0.05729242 22100 2.04172507 21400428916 231 0.00151067 210 50000006456 21050 0 E R T Y U D F G Moodle Use MSFT.pdf file provided to you with historical returns from 5/1/2016 to 3/19/2021. Assume current price of MSFT\s $231.02/share. Use the bootstrapping approach (that estimates a return on MSFT during each of the next 12 months by assuming that the return during each month is equally likely to be any of the returns for the 60 months listed in MSFT.pdf) to estimate MSFT ending Price in one year Use Data Table to generate 1000 scenarios of MSFT price in one year (i.e. Run Monte Carlo simulations on stock price). PART 1: Estimate the probability that in a year the price of MSFT stock will be at least $350. PART 2: Estimate the probability that in a year the price of MSFT stock will be less than $231.02. oltre Downloads/PROB.MSFT.pdf Date MSFT Adj Glose MSFT 4/1/2016 45,729378 RETURN 5/1/2016 48.599503 0.06276326 6/1/2016 47.24963 0,0277754 7/1/2016 52.337479 0.10768019 8/1/2016 53.057735 0.01376176 9/1/2016 53.518501 0.00868424 10/1/2016 55.674103 0.0402777 11/1/2016 55.990009 0.0056742 12/1/2016 58.126839 0.03816449 1/1/2017 60.474731 0.04039256 2/1/2017 59.848015 0.0103633 3/11/2017 61.980083 0.03562471 4/1/2017 64.42691 0.03947763 5/1/2017 65.725601 0.02015759 6/1/2017 65.241043 0.0073724 7/1/2017 68 809288 0.05469325 8/1/2017 70.768509 0.02847321 91/2017 70.879335 0.00156321 10/1/2017 79.147381 0.1166598 11/1/2017 B008989 0.01190159 12/1/2017 81 802251 002138061 1/1/2018 0584.44 0.11070822 2/1/2018 23672646 -0.011051 3/1/2018 87.69187900220899 4/1/2018 153651 0.03465193 1/2018 465103 005681619 4/1/2018 95.154778 0.00199731 1/1/2018 1023607 007575299 1/1/2018 1394008 0.05891766 9/11/20 130787162 0.02.2010 10/1/2012 10146408100661003 11/1/2018 50781639 DO 12/1/2018 13700 1/1/2018 SEST OSS 2/1/2019 ar 1/2010 A19 074 w 1/1/2018 11 10 5 W E R. T S D F G H Downloads/PROB_MSFT.pdf 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 115.228996 0.05724968 127.598007 0.10734287 120.837059 -0.0529863 131.365234 0.08712704 133.630493 0.01724398 135.189682 0.01166791 136.791 0.01184497 141061111 0.03121632 148.942123 0.05586949 155 688324 0.04529411 168,058472 0.07945456 2/1/2020 2/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 B/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2001 2/1/20 11/2021 3/11/2021 159.943344 -0.0482875 156.123474 0.0238826 177.407196 0.13632621 181.40654 0.0225433 202 023819 011365235 201512848 0.00737056 221 2996 0.10009260 2002997210051424 201.4772 0.033 211020401 0.05729242 22100 2.04172507 21400428916 231 0.00151067 210 50000006456 21050 0 E R T Y U D F G