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2) Create a Random Number Assignment table for the situation below. Then, MANUAL

ID: 1096508 • Letter: 2

Question

2) Create a Random Number Assignment table for the situation below. Then, MANUALLY simulate 15 years of ownership of the stock described. Assume this stock was purchased today at $40 per share. Your simulation should determine for each of the next 15 years, how much the stock price rose or fell in each of the 15 years of ownership (between decreasing in share price by $4.50 per share to an increase in share price of $6.50). What would their CAPITAL GAIN or CAPITAL LOSS be (assuming no dividends nor reinvestments are involved)?

Explanation / Answer

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