Over a 5 year period the quarterly change in the price per share of common stock for a major oil company ...

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     Over a 5 year period   the quarterly change in the price per share of common stock for a major oil   company ranged from -8 to +12%. 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 the   change in price for each quarter is uniformly distributed between -8 and 12%.   Use simulation to provide information about the price per share for the stock   over the coming two year period (eight quarters).   a) Use these random numbers (.52, .99,   .12,.15,.50,.77,.40,.52 to simulate  the quarterly price change for each   of the eight quarter   b) If the current price per share is 80,   what is the simulated price per share at the end of the two year period?    

    • 8 years ago
    (b) At the end of 2 years the price/share = $92.14 ...
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      Overa5yearperiodthequarterlychangeinthepricepershareofcommonstockforamajoroilcompanyrangedfrom.xls