Replicte the fur perid simultin 100 times using rndm numbers t simulte stck chng

Question

Replicte the fur perid simultin 100 times using rndm numbers t simulte stck chnges in price. Wht is the verage ending stck price frm yur 100 replictins? I need to know which Excel commands to use, best with an example. No need to do parts A and B.

5. The price of a share of a particular stock listed on the New York Stock Exchange is per share is currently $39. The following probability distribution shows how the price expected to change over a three-month period: Stock Price Change ($) Probability 0.05 0.10 0.25 0.20 0.20 0.10 0.10 Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period. a. b. With the current price of $39 per share and the random numbers 0.1091, 0.9407, 0.1941, and 0.8083, simulate the price per share for the next four 3-month periods. What is the ending simulated price per sh are?

Explanation / Answer

USE rand() to generate uniform(0,1)

then in another column write the last code

then you get the changes

do it 100 times and get the average

Thanks

get the changed stock by adding the change to original

for wxample

IF A1<= 4, return $20
IF A1 > 4 but <= 9, return $35
IF A1 > 9 but <= 14, return $50
IF A1 > 15, return $75

use the code

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