Problem

A stock whose price is $30 has an expected return of 9% and a volatility of 20%. In Excel,...

A stock whose price is $30 has an expected return of 9% and a volatility of 20%. In Excel, simulate the stock price path over 5 years using monthly time steps and random samples from a normal distribution. Chart the simulated stock price path. By hitting F9, observe how the path changes as the random samples change.

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Solutions For Problems in Chapter 13