Stock Markets Exposed
“Model a stock price as a random process. Assume it increases by 10% a year on average and it fluctuates d?
“Model a stock price as a random process. Assume it increases by 10% a year on average and it fluctuates daily with the maximum 1%. If the starting price is $20 and the daily” change is a uniform random variable, simulate the performance of the stock price over one year using Excel. Design a trading strategy to maximize your total average return assuming you have $10,000 and each trade costs your $10. (Hint:”Use Excel function RAND to generate daily price variation. A year has about 250 trading days”.)”
Public Comments
- There are two completely independent parts to this question. With which are you having problems? How far have you gotten on this part?
