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Simulation on MATLAB PLEASE DO this if u can Simulation of normally distributed stock prices Suppose we have the following model for monthly stock price
Simulation on MATLAB PLEASE DO this if u can
Simulation of normally distributed stock prices Suppose we have the following model for monthly stock price returns: In Se+1 - In S = 1+0t:t+1, where ett+1 ~ N(0,1). (a) Simulate 1,000 paths for the 1-year stock return. Plot the distribu- tion of the simulated 1-year stock returns. Report the average and standard deviation of the simulated distribution. Check if the average of the 1-year simulated stock returns is in the 99% confidence interval of the 1-year ex- pected stock return. Model parameters are: 1 = 0.5% and 9 = 5%. Simulation of normally distributed stock prices Suppose we have the following model for monthly stock price returns: In Se+1 - In S = 1+0t:t+1, where ett+1 ~ N(0,1). (a) Simulate 1,000 paths for the 1-year stock return. Plot the distribu- tion of the simulated 1-year stock returns. Report the average and standard deviation of the simulated distribution. Check if the average of the 1-year simulated stock returns is in the 99% confidence interval of the 1-year ex- pected stock return. Model parameters are: 1 = 0.5% and 9 = 5%
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