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The price of a share of a particular stock listed on the New York Stock Exchange is currently $36. The following probability distribution shows how
The price of a share of a particular stock listed on the New York Stock Exchange is currently $36. The following probability distribution shows how the price per share is expected to change over a three-month period:
Stock Price Change ($) | Probability |
---|---|
-2 | 0.05 |
-1 | 0.20 |
0 | 0.20 |
1 | 0.05 |
2 | 0.25 |
3 | 0.20 |
4 | 0.05 |
- Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period. If required, round your answers to two decimal places.
Stock Price Change Probability Interval -2 0.05 fill in the blank 1 but less than fill in the blank 2 -1 0.20 fill in the blank 3 but less than fill in the blank 4 0 0.20 fill in the blank 5 but less than fill in the blank 6 +1 0.05 fill in the blank 7 but less than fill in the blank 8 +2 0.25 fill in the blank 9 but less than fill in the blank 10 +3 0.20 fill in the blank 11 but less than fill in the blank 12 +4 0.05 fill in the blank 13 but less than fill in the blank 14 - With the current price of $36 per share and the random numbers 0.4175, 0.7087, 0.5541 and 0.8495, simulate the price per share for the next four 3-month periods.
Random Number Price Change Ending Price Per Share 0.4175 fill in the blank 15 $ fill in the blank 16 0.7087 fill in the blank 17 $ fill in the blank 18 0.5541 fill in the blank 19 $ fill in the blank 20 0.8495 fill in the blank 21 $ fill in the blank 22
Look at the full numbers before you answer my questionLook at the full numbers before you answer my questionLook at the full numbers before you answer my questionLook at the full numbers before you answer my question
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