Dec 08 2019 07:17 AM
I am working on a homework problem and I am trying to use the What-If Analysis. I don't know if I do not have enough values or if I am not inputting them correctly.
The problem is as follows:
You have two investment options:
You plan on investing $1,000
Stock A is pretty stable and the lowest it is expected to down to $8 but some analysts believe it could go up to $13
Stock B is more volatile. The lowest it is expected to go is as low as $65, but it could get as high as $150.
Is anyone able to help me with the set up for this problem?
Dec 08 2019 09:57 AM
Since you start with saying I am working on a homework problem and I am trying to use the What-If Analysis. I don't know if I do not have enough values or if I am not inputting them correctly, it seems reasonable to assume that you've made some tries already.
Why don't you upload what you've done so far so I or somebody else can comment on what you've done and not have to start from scratch.
Also, since you acknowledge it's a homework problem, I'm sure you'll agree that it makes more sense that you do most of the work....so if I end up being the one commenting, I might just offer one or two suggestions like...(1) write your formulas so they use a separate field called "assumed growth rate for S&P 500 overall" or something like that. (2) You clearly need a variable (better as a separate cell referenced in your "What-if" formulas) that would reflect that vague thing called "volatility".... and so forth.