solved a). Construct a simulation model that computes the value of
a). Construct a simulation model that computes the value of the stock price in 3 months, 6 months,
9 months, and 12 months under the assumption that the change in stock price over any 3-month
period is independent of the change in stock price over any other 3-month period. Describe in detail
what the result from the data run indicates. b). With the current price of $33 per share, simulate the price per share for the next four 3-month
periods. What is the average stock price per share in 12 months? Again, describe in detail what the
result from the data run indicates.
Provide a thorough analysis for your answers to both a. and b. in the analysis word document. Be
sure and use the correct notations that explains all equations and variables as appropriate.