MATLAB: Simulate a time series of stock price using Monte-Carlo simulations

Question

Hy everyone, I need to compute a time series of stock price assuming that they are driven by a random walk. What would be the best way to approach the problem, i.e. the right function to do so? I should replicate it 10.000 times (N=10.000).

thanks for the help.

Answer 1

Here is some code to get you started:

   N = 10000;
   P = nan(N,1);
   P(1) = ...
   for k = 2:N
       P(k) = P(k-1) + ...
   end
   figure;
   plot(P);