You are considering investing $200 in the stock market. You believe that you will be able...

 

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You are considering investing $200 in the stock market. You believe that you will be able to keep the money invested for 5 years and earn a 5% return. Note: you will conduct sensitivity analysis on both horizon and discount rate, so you should make sure your final answer is a function of both. [3 points] a. How much money do you expect to have at the end of five years? (Please use consistent formatting throughout the spreadsheet). [0.5 points] b. Using a vertical data table, explore how your results vary when the interest rate changes from 1% to 10%. Intuitively explain why the variation makes sense. [Note: you can just write your answer in a cell and highlight the answer). [0.5 points] c. Using a horizontal data table, explore how your results vary when your investment horizon changes from 1 to 10 years. Intuitively explain why the variation makes sense. [0.5 points] d. Create a two-dimensional table showing how results change when the interest rate changes from 1% to 10% and the investment horizon changes from 1 to 10 years. [1 points] e. Using excel functions, across all 100 data-cells report the [0.5 points] i. Average savings ii. The Minimum savings iii. The Maximum savings You are considering investing $200 in the stock market. You believe that you will be able to keep the money invested for 5 years and earn a 5% return. Note: you will conduct sensitivity analysis on both horizon and discount rate, so you should make sure your final answer is a function of both. [3 points] a. How much money do you expect to have at the end of five years? (Please use consistent formatting throughout the spreadsheet). [0.5 points] b. Using a vertical data table, explore how your results vary when the interest rate changes from 1% to 10%. Intuitively explain why the variation makes sense. [Note: you can just write your answer in a cell and highlight the answer). [0.5 points] c. Using a horizontal data table, explore how your results vary when your investment horizon changes from 1 to 10 years. Intuitively explain why the variation makes sense. [0.5 points] d. Create a two-dimensional table showing how results change when the interest rate changes from 1% to 10% and the investment horizon changes from 1 to 10 years. [1 points] e. Using excel functions, across all 100 data-cells report the [0.5 points] i. Average savings ii. The Minimum savings iii. The Maximum savings

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