Riskiness of Investing and A Monte Carlo Simulation Worksheet

1. Attached is an Excel file with one year of daily data for the Exchange Traded Fund (ETF) Spyders (Ticker Symbol SPY). Based on this data, prepare a report (it can all be done in Excel) on the riskiness of investing in this fund.

2.Prepare a Monte Carlo Simulation and a report on your outcomes for what the net profit might be for the Tim Hortons that is in the Dalhousie Student Union Building (SUB) for the coming Fall semester. Your analysis should include at least five different random variables. Some suggested variables might include (you can use different variables); what percentage of students (and faculty) will come to campus, what percentage will shop at Tim Hortons in the SUB, what amount each customer will spend, what expenses are expected to be, etc. I realize that you will need to make some heroic assumptions but do the best that you can. You will be marked mainly on how you develop and interpret your analysis, and much less on your specific assumptions.

Note, this is a risk exercise that many small businesses are doing at this moment as they consider what demand for their products and services will be after COVID finally starts to wane.