Abstract
This study provides an easy and effective way to simulate distributions of future stock price and return. Using a bootstrapping approach for simulation, we generate one thousand different scenarios for Google's price after one year and the corresponding percentage return. The simulated return distribution provides a comprehensive risk-return profile that includes probabilities associated with achieving a specific return in these uncertain times. We explain and create an excel template showing the bootstrapping simulation that can be readily used in finance classrooms. Using the same methodology, students can conduct their own simulations of different assets and compare their risk-return tradeoffs.
Recommended Citation
(2026)
"Bootstrap Simulation with Spreadsheet Application,"
Journal of Economics and Finance Education: Vol. 15:
Iss.
1, Article 1.
Available at:
https://scholarship.rollins.edu/jefe/vol15/iss1/1
