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Question: 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 23 days, up $.50 on 16 days, remained unchanged on 12 days, went down $0.75 on 35 days, and down $1 on 14 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 Analytic Solver Platform, repeat the simulation 100 times to find the average price after 90 days, and create a frequency distribution of the net change.

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  • Category:- Basic Finance
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