Problem 12-11 (Algorithmic) Over a five-year period, the quarterly change in the price per share of common stock for a major oil company ranged from -9% to 14%. A financial analyst wants to learn what can be expected for price appreciation of this stock over the next two years. Using the five-year history as a basis, the analyst is willing to assume that the change in price for each quarter is uniformly distributed between -9% and 14%. Use simulation to provide information about the price per share for the stock over the coming two-year period (eight quarters). a. Use the random numbers 0.45, 0.88, 0.14, 0.18, 0.54, 0.73, 0.40 and 0.54 to simulate the quarterly price change for each of the eight quarters. If required, round your answers to two decimal places. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Quarter Return % 1 10.45 2 0.88 3 0.14 4 0.18 5 0.54 6 0.73 % 7 0.40 % B 0.54 b. If the current price per share is $83, what is the simulated price per share at the end of the two-year period? If required, round your answer to two decimal places. $ Discuss how risk analysis would be helpful in identifying the risk associated with a twowe investment in this stock Previous Next 20 MacBook F3 F4 $ - 96 5 0 > & 7 C 9 2 3 6 8 0 2 0.88 % 3 0.14 % 4 0.18 % 5 0.54 % 6 0.73 % 7 0.40 % 8 0.54 % b. If the current price per share is $83, what is the simulated price per share at the end of the two-year period? If required, round your answer to two decimal places. $ c. Discuss how risk analysis would be helpful in identifying the risk associated with a two-year investment in this stock. Risk analysis requires of the eight-quarter, two-year period, which would then provide a distribution of the ending price per share. Pres signment Score: 0.0% All work saved Save and Exit Submit 20 o MacBook DOO D F3 F7 4 0.18 % 5 0.54 % 6 0.73 % 7 0.40 % 8 0.54 % f the current price per share is $83, what is the simulated price per share at the end of the two-year one simulation Discuss how risk anal multiple simulations identifying the risk associated with a two-year investment Risk analysis requires of the eight-quarter, two-year period, which would then prov gnment Score: 0.0% All work saved. 20 BO F3 DOO DOO F4 FI F2 F5 F6 7 2 $ % # 3 2 4 5 6 7