Assume within the next 2 years behavior of these two stocks will look very much
similar to what they have exhibited over the past 2 years. In other words,
estimates of the expected returns, volatility and other parameters based on the
data you have downloaded will not be biased.
? Use current stock prices for the two companies and run 10 simulations (for each
stock) of the future stock price dynamics assuming lognormal price paths, using
weekly time steps, till end of January 2021, following the discussion of the
textbook, Chapter 26:
Attachments:
FIN300-Final-….pdf
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