Stock price simulation: A stocks price is lognormally distributed with mean = 15% and =
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Stock price simulation: A stock’s price is lognormally distributed with mean μ = 15% and σ = 50%. The current stock price is S0 = 35. Following the template on the spreadsheet, create 60 dynamic standard normal deviates using Norm.S.Inv(Rand( )). Use these random numbers to simulate the stock price path over 60 months and graph.
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So 35 S1 stock price at t 1 month So expmt st05normsinvrand where m mean return 15 s standard deviation 153060 normsinvrand is the function of excel t...View the full answer
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