Question: Write a program (either in VBA or R) that reproduces the lognormal frequency distribution for an arbitrary number of runs. That is, this program should:

Write a program (either in VBA or R) that reproduces the lognormal frequency distribution for an arbitrary number of runs. That is, this program should:

Produce N normal random deviates.

For each deviate produce a lognormal price relative Classify each price relative into a set of bins running from 0, 0.1, …, 3.

Put the frequencies on the spreadsheet and produce a frequency graph such as the one in section 23.4.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Modeling Questions!

Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, the company is thinking about dropping several flights that appear to be...

What is the present value of $1,625 per year, at a discount rate of 7 percent, if the first payment is received 6 years from now and the last payment is received 20 years from now? Year Cash Flow...

Consider the space curve (t) = (2t, cos(t), sin(t)). a. Find the arc length function for 7(t). s(t) = b. Find the arc length parameterization for r(t). 7(s) = (

Write a VBA program which reproduces the lognormal frequency distribution for an arbitrary number of runs. That is, this program should Produce N normal random deviates. For each deviate produce a...

1. A player throws a fair die and simultaneously flips a fair coin. If the coin lands heads, then she wins twice, and if tails, then one-half of the value that appears on the die. Determine her...

Microkernel operating systems aim to address perceived modularity and reliability issues in traditional "monolithic" operating systems. (i) Describe the typical architecture of a microkernel...

\fThis is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does...

Possible Multiple Choice Questions for the Exam. Focus on the topics discussed in class. Chapter 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____...

What is a function calling convention and how does it impact the design of the RISC-V instruction set architecture (ISA)? [4 marks] (d) Consider the following C function that computes the greatest...

can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...

A jumbo jet with a mass of 5 million kg requires a speed of 175 mph for take off. Assuming an overall efficiency of 20% (from heat release to kinetic energy of the aircraft), determine the amount of...

Explain four types of integrity controls for input forms. Which have you seen most frequently? Why are they important?

If a company decided to change from quarterly to annual interest payments, how would this affect the bond s interest rate risk? Question 1 Answer a . The risk is unrelated to the change b . The risk...

Try an online course that offers a badge of progress for your LinkedIn profile. LinkedIn provides online training that may serve this purpose.

(Risk-averse investor) A basic assumption of economics is that investors are risk averse, meaning that when they view asset A as riskier than asset B they will demand a higher expected return. A fair...

(Factors affecting return) During a stamp collector convention, the chairman spoke about the profitability of investing in rare stamps. Last year I invested $150,000 in rare stamps. These stamps are...

(Factors affecting return) Can a corporate bond have a lower expected return than a government bond? Can it have lower ex-post return?

correct, 4.5-16 You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to...

If growth through gaining market share through product promotion and pricing rarely creates much value, why do consumer goods companies put so much effort into it?

A 15-year-par-value bond pays semi-annual coupons at a rate of 7% per year. The bond is priced to yield 9% per year convertible semi-annually. The par value of the bond is $100. Determine the total...