Amazon FREE Amazon Work Simulation Questions and Answers
1) intermittent daily return = ln (day's price ÷ previous day's price) 2) drift = average daily return - (variance ÷ 2) 3) random value = standard deviation * NORMSINV(RAND() 4) next day's price = today's price * e ^ (drift + random value) The likelihood that the actual return will be between the most likely ("anticipated") rate and one standard deviation is 68%, two standard deviations is 95%, and three standard deviations are 99.7%.