The price of a share of a particular stock listed on the New York Stock Exchange is currently $39. The probability distribution shows how the price per share is expected to change over a 3-month period. Build a simulation model that spans five years (20 periods). Using this one iteration, what do you expect the price of the stock to be at the end of 5 years? Cumulative Prob 3-month Change in Stock Price ($) Probability 0 -2 5% 5% -1 10% 15% 0 25% 40% 1 20% 60% 2 20% 80% 3 10% 90% 4 10%
The price of a share of a particular stock listed on the New York Stock Exchange is currently $39. The probability distribution shows how the price per share is expected to change over a 3-month period. Build a simulation model that spans five years (20 periods). Using this one iteration, what do you expect the price of the stock to be at the end of 5 years? Cumulative Prob 3-month Change in Stock Price ($) Probability 0 -2 5% 5% -1 10% 15% 0 25% 40% 1 20% 60% 2 20% 80% 3 10% 90% 4 10%
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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The price of a share of a particular stock listed on the New York Stock Exchange is currently $39. The
Using this one iteration, what do you expect the price of the stock to be at the end of 5 years?
Cumulative Prob | 3-month Change in Stock Price ($) | Probability |
0 | -2 | 5% |
5% | -1 | 10% |
15% | 0 | 25% |
40% | 1 | 20% |
60% | 2 | 20% |
80% | 3 | 10% |
90% | 4 | 10% |
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