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Your investment strategy for the next 5 years is: convert all your money to stock when the price drops below $ 95, and sell all stock and put the money in the bank when the stock price exceeds $ 110. Describe how to simulate the results of this strategy for the model given. Note: You will have to generate 60 random variables with distribution U(0,1) to answer this question. Use a C program to generate 60 random numbers. Include list of your random numbers in your HW solution.

Your investment strategy for the next 5 years is: convert all your money to stock when the price drops below $ 95, and sell all stock and put the money in the bank when the stock price exceeds $ 110. Describe how to simulate the results of this strategy for the model given. Note: You will have to generate 60 random variables with distribution U(0,1) to answer this question. Use a C program to generate 60 random numbers. Include list of your random numbers in your HW solution.

Computer Networking: A Top-Down Approach (7th Edition)
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Please Use C program for this. thank you.

4) A tiny financial model: To investigate investment strategies, consider the following: You can choose to invest your money in one particular stock or put it in a savings account. Your initial capital is $ 1000. The interest rate r is 0.5% per month and does not change. The initial stock price is $ 100. Your stochastic model for the stock price is as follows: next month the price is the same as this month with probability 1/2, with probability 1/4 it is 5% lower, and with probability 1/4 it is 5% higher. This principle applies for every new month. There are no transaction costs when you buy or sell stock. SCI 3560 – HW # 6 Page 1 of 2 Your investment strategy for the next 5 years is: convert all your money to stock when the price drops below $ 95, and sell all stock and put the money in the bank when the stock price exceeds $ 110. Describe how to simulate the results of this strategy for the model given. Note: You will have to generate 60 random variables with distribution U(0,1) to answer this question. Use a C program to generate 60 random numbers. Include list of your random numbers in your HW solution.
Transcribed Image Text:4) A tiny financial model: To investigate investment strategies, consider the following: You can choose to invest your money in one particular stock or put it in a savings account. Your initial capital is $ 1000. The interest rate r is 0.5% per month and does not change. The initial stock price is $ 100. Your stochastic model for the stock price is as follows: next month the price is the same as this month with probability 1/2, with probability 1/4 it is 5% lower, and with probability 1/4 it is 5% higher. This principle applies for every new month. There are no transaction costs when you buy or sell stock. SCI 3560 – HW # 6 Page 1 of 2 Your investment strategy for the next 5 years is: convert all your money to stock when the price drops below $ 95, and sell all stock and put the money in the bank when the stock price exceeds $ 110. Describe how to simulate the results of this strategy for the model given. Note: You will have to generate 60 random variables with distribution U(0,1) to answer this question. Use a C program to generate 60 random numbers. Include list of your random numbers in your HW solution.
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