Create frequency distribution of the net change

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Reference no: EM131902603

You are considering buying a stock that currently has a price of $38.75. Looking at historical data you found that for the past 100 trading days, the stock went up $1 on 21 days, up $.50 on 17 days, remained unchanged on 10 days, went down $0.50 on 35 days, and down $1 on 17 days. Simulate the price of the stock for the next 90 days. You should also find net gain or loss after the 90 days. Using a data table in Excel or using @RISK, repeat the simulation 100 times to find the average price after 90 days, and create a frequency distribution of the net change.

How to use excel and @RISK to make simulation? Please show the formulas.

Reference no: EM131902603

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