Question: 7. Repeat the previous problem, only use Monte Carlo simulation. assume that the risk-free rate is 0.08 and that there are three stocks with a

7. Repeat the previous problem, only use Monte Carlo simulation.

assume that the risk-free rate is 0.08 and that there are three stocks with a price of $100 and the following characteristics:

α σ δ Correlation with B Correlation with C Stock A 0.15 0.30 0.00 0.25 0.20 Stock B 0.18 0.45 0.02 1.00 0.30 Stock C 0.16 0.50 0.00 0.30 1.00

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