Expected return and random values

In the last set of exercises, you found that ABC's final stock price was $83.00 with a volatility of 28.56%. Using this data, we can simulate stock prices on an average expected return (\mu) of 15% per year.

First, calculate the compounded expected rate of return (k). Then, use the normsinv() and rand() functions to simulate volatility of the market. You can maximize the columns to see all the labels clearly.