Over a 5 year period the quarterly change in the price per share of common stock for a major oil company ...
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
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- Overa5yearperiodthequarterlychangeinthepricepershareofcommonstockforamajoroilcompanyrangedfrom.xls