I have to make stock changes for the 90 days and professor showed example for 50 days.
I do not know how to do it.
Homework Answers
Please understand the process of linking the random number with the probability distribution.
When you generate a random number between 0 and 1, it is
uniformly distributed, but if you divide this range of 0 to 1 into
7 buckets where -
1st bucket is of size 0.05 [Start at 0, end at 0.05]
2nd bucket is of size 0.10[Start at 0.05, end at 0.15]
3rd bucket is of size 0.25[Start at 0.15, end at 0.40]
4th bucket is of size 0.20[Start at 0.40, end at 0.60]
5th bucket is of size 0.20[Start at 0.60, end at 0.80]
6th bucket is of size 0.10[Start at 0.80, end at 0.90]
7th bucket is of size 0.10[Start at 0.90, end at 1.00]
You have ultimately transformed your uniform distribution of random
numbers to a desired probability distribution given in the
question.
Now, for next 90 days generate a random number and check it
belongds to which bucket, based on the bucket decide what will be
change in the price as given below -
- First I generate random numbers for all 90 days, later on I will
copy and paste values only to ensure that my random numbers do not
change every time I do some operation in the excel sheet -
Once, I pasted the "Values", random numbers might have changed once more, but now they should remain constant for the rest of the workings.
Now, look for each random number, in which bucket it lies.
Remember this will be a 6-step comparison. You will first check if
random number is in first bucket, if yes you will assign it value
from first bucket, then you will move on to check for the next
bucket. You will keep doing this till last bucket. There are 7
bucket and 6 comparisons will be required, as if some random number
is not in first 6 buckets, it will definitely be in 7th bucket, so
7th comparison will not be required. This formula will be very
lengthy as described above, but you will need to type it only for
the first cell, then it can be simply copied in all other remaining
cells -
For simplicity, let me paste the formula for for cell C3 here
-
=IF(B3<=$O$3,$M$3,IF(B3<=$O$4,$M$4,
IF(B3<=$O$5,$M$5,IF(B3<=$O$6,$M$6,
IF(B3<=$O$7,$M$7,IF(B3<=$O$8,$M$8,$M$9))))))
I have shown formula for first 30 dates only, but it will be
same in all other cells as well. Finally all the changes thus
calculated are added to the initial share price to get the final
share price -
Final values look like below -
For random numbers generated by me, final share price is 152, but depending upon random numbers generated by you this final price may be a bit different as well.
Add Answer to:
I have to make stock changes for the 90 days and professor
showed example for 50...
(All answers were generated using 1,000 trials and native Excel functionality.) Suppose that the price of a share of a particular stock listed on the New York Stock Exchange is currently $39....
(All answers were generated using 1,000 trials and native Excel functionality.) Suppose that the price of a share of a particular stock listed on the New York Stock Exchange is currently $39. The following probability distribution shows how the price per share is expected to change over a three- month period: Probability 0.05 0.10 0.25 0.20 0.20 Stock Price Change ($) 2 2 0 +1 +2 price per share is expected to change over a three- month period: Stock Price...
The price of a share of stock is currently $39. The following probability distribution shows how...
The price of a share of stock is currently $39. The following probability distribution shows how the price per share is expected to change over a 3-month period: Price Change ($) Probability -2 0.05 - 1 0.10 0 0.25 +1 0.35 +2 0.25 If you were to set up a table for random sampling from this distribution using VLOOKUP on Excel, what price change would you generate using a random number of 0.6568? a) +1 b) 0 c) +2 d)...
MCQ1. The chart below shows the prices on two consecutive days for Wal-Mart, a component stock...
MCQ1. The chart below shows the prices on two consecutive days for Wal-Mart, a component stock of the Dow Jones Industrial Average. The chart also shows the sum of the 30 stock prices on each of the days. Use this price information to answer the following questions. (Hint: the PWI is calculated as the adjusted average price) Stock Close: t Close: t+1 Wal-Mart (WMT) 49.6 24.47 30 sum of Prices ( 1505.74 1469.29 i: 0 The Dow Jones Industrial Average...
2. A stock has two possible ending prices six months from now: $120 or $90. A...
2. A stock has two possible ending prices six months from now: $120 or $90. A call option written on this stock has an exercise price of $110. The option expires in six months. The risk-free rate is 6% per year. The current price of the stock is $100. a. Show how you can create a hedge portfolio using a combination of the stock and call option on this stock. b. What is the equilibrium price of the call option...
89 2 3 5 6 5 6 2 70 4 4 4 2 2 2 9 4 6 4 3 3 6 9 2 9 7 4 9 5 9 5 60 60 98 LA 534 80 50 00 20 00 20 00 60 40 50 90 50 90 80 20 60 40 30 00 90 70 50 80 90 20 90 10 60 50 60 50 60 00 90 10 70 0 1 0 7 9 9...
89 2 3 5 6 5 6 2 70 4 4 4 2 2 2 9 4 6 4 3 3 6 9 2 9 7 4 9 5 9 5 60 60 98 LA 534 80 50 00 20 00 20 00 60 40 50 90 50 90 80 20 60 40 30 00 90 70 50 80 90 20 90 10 60 50 60 50 60 00 90 10 70 0 1 0 7 9 9 7 .-9....
Hello, I have written a code that I now need to make changes so that arrays...
Hello, I have written a code that I now need to make changes so that arrays are transferred to the functions as pointer variable. Below is my code I already have. #include<iostream> #include<string> #include<iomanip> using namespace std; //functions prototypes void getData(string id[], int correct[], int NUM_STUDENT); void calculate(int correct[], int incorrect[], int score[], int NUM_STUDENT); double average(int score[], int NUM_STUDENT); void Display(string id[], int correct[], int incorrect[], int score[], double average, int NUM_STUDENT); int findHigh(string id[], int score[], int NUM_STUDENT);...
Hello guys, i really need your help me solve problem with my assignment excel spreadsheet. how...
Hello guys, i really need your help me solve problem with my
assignment excel spreadsheet. how i put into value in column right
(total : subtotal: HST: Amount Due: ) ? how can i solve problem
like e.g =B2*B3 or =C4+ E4 or ISNUMBER? I am new to excel
spreadsheet, i will learn from you, thank you so much
Problem 2: Invoice Figure 3. You may use the Item, Quantity and List_Price data as provided. • Discount Rate, Discount Threshold...
This is due soon question keeps going unanswered someone please help me PortaCom manufactures notebook computers...
This is due soon question keeps going unanswered someone please
help me
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost: Selling price = $249 per unit Administrative cost = $400,000...
l. Baxter's Books is considering an order for the latest thriller from author Jimmy Peterson. The...
l. Baxter's Books is considering an order for the latest thriller from author Jimmy Peterson. The store manager assumes that demand will be 50, 100, 150, or 200 copies next month and needs to decide whether to order 50, 100, 150, or 200 copies for that period. Each book will cost Baxter's $20 and can be sold for $30 Baxter will be able to send any unsold books back to the publisher for a refund of $5 each. According to...
HI, I am having trouble finsihing this program i was wondering if someone could help me....
HI, I am having trouble finsihing this program i was wondering if someone could help me. Thanks in adavnce. Here is the code that I have so far..... //Stack.h // implementation file for the stack class #include <iostream> using namespace std; const int stack_size = 100; class stack { private: char data [stack_size]; // elements in the stack int top; // index of the top element of the stack public: stack (); // constructor creates an empty stack void push...
(All answers were generated using 1,000 trials and native Excel functionality.) Suppose that the price of a share of a particular stock listed on the New York Stock Exchange is currently $39. The following probability distribution shows how the price per share is expected to change over a three- month period: Probability 0.05 0.10 0.25 0.20 0.20 Stock Price Change ($) 2 2 0 +1 +2 price per share is expected to change over a three- month period: Stock Price...
MCQ1. The chart below shows the prices on two consecutive days for Wal-Mart, a component stock of the Dow Jones Industrial Average. The chart also shows the sum of the 30 stock prices on each of the days. Use this price information to answer the following questions. (Hint: the PWI is calculated as the adjusted average price) Stock Close: t Close: t+1 Wal-Mart (WMT) 49.6 24.47 30 sum of Prices ( 1505.74 1469.29 i: 0 The Dow Jones Industrial Average...
2. A stock has two possible ending prices six months from now: $120 or $90. A call option written on this stock has an exercise price of $110. The option expires in six months. The risk-free rate is 6% per year. The current price of the stock is $100. a. Show how you can create a hedge portfolio using a combination of the stock and call option on this stock. b. What is the equilibrium price of the call option...
89 2 3 5 6 5 6 2 70 4 4 4 2 2 2 9 4 6 4 3 3 6 9 2 9 7 4 9 5 9 5 60 60 98 LA 534 80 50 00 20 00 20 00 60 40 50 90 50 90 80 20 60 40 30 00 90 70 50 80 90 20 90 10 60 50 60 50 60 00 90 10 70 0 1 0 7 9 9 7 .-9....
Hello guys, i really need your help me solve problem with my
assignment excel spreadsheet. how i put into value in column right
(total : subtotal: HST: Amount Due: ) ? how can i solve problem
like e.g =B2*B3 or =C4+ E4 or ISNUMBER? I am new to excel
spreadsheet, i will learn from you, thank you so much
Problem 2: Invoice Figure 3. You may use the Item, Quantity and List_Price data as provided. • Discount Rate, Discount Threshold...
This is due soon question keeps going unanswered someone please
help me
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost: Selling price = $249 per unit Administrative cost = $400,000...
l. Baxter's Books is considering an order for the latest thriller from author Jimmy Peterson. The store manager assumes that demand will be 50, 100, 150, or 200 copies next month and needs to decide whether to order 50, 100, 150, or 200 copies for that period. Each book will cost Baxter's $20 and can be sold for $30 Baxter will be able to send any unsold books back to the publisher for a refund of $5 each. According to...
Most questions answered within 3 hours.
-
Why study the ‘Economic environment’ of a country? Describe the
information you will be collecting in...
asked 4 minutes ago -
A chandelier with mass m is suspended from a cable with mass M
from the ceiling....
asked 13 minutes ago -
How many disk accesses are needed to bring byte i of a file
into memory when...
asked 17 minutes ago -
2. You want to buy a house. You can make an initial payment of
$200,000 and...
asked 13 minutes ago -
22.3 g of fructose, C6H12O6,
are dissolved completely in 75.5 mL of pure water at 20.0...
asked 15 minutes ago -
Two bankrobbers are standing side by side, trying to push open
the door of a safe...
asked 16 minutes ago -
Compare/Contrast the Lac and Ara operons.
asked 33 minutes ago -
Part A
What is the maximum speed with which a 1200-kg car can round a
turn...
asked 34 minutes ago -
Write in c++ please
Read and write 5 students information such as, Student
ID, first name,...
asked 33 minutes ago -
T F 3. The existence of financial markets is required to have
interest rates in a...
asked 31 minutes ago -
In a recent survey of homes in a major Midwestern city, 10% of
the homes have...
asked 25 minutes ago -
information was collected by an extensive marketing project that
lasted over the past 12 years and...
asked 32 minutes ago