@RISK HELP

• Question: OK, so how do we use @RISK at all? None of us have used it.
• Answer: Here is an EXCEL file with a simple example of how to use @RISK. Hey, it has a ".gif" extension, but it is an excel file. Why don't you download the file (click on the link and choose save as). With the file on your disk, choose

  Start
  Programs
  Departmentally Sponsored
  BUS
  @RISK
  @RISK 3.5 for EXCEL {32-bit}
  

  in that order (let me know if this fails). Be sure to ENABLE MACROS if the computer asks you, else @RISK does not seem to work. Then load the file up into the (@RISK) EXCEL spreadsheet that appears and try to run the simulation. Be sure to choose the final stock price and the call payoff as @RISK OUTPUTS (highlight each cell in turn and click on the "Add the selected cells as @RISK outputs" button.)

  HINTS:

  1. use the "Change @RISK settings" or "sim sett" button and "iterations" to increase the number of simuated observations.
  2. when you click on graph after the simulation, click the right mouse button over the graph and choose "format" and choose "fitted curve" as the default (really nice to look at).
  3. I suggest 1000 iterations to start, (and 10,000 when you have got everything worked out).
  4. The items that are graphed by clicking on the graph button are the ones that you highlight in the "summary or results" section after the simulation.
  5. The percentiles and the mean are all in the simulation statistics section of the window after you run the simulation.
  6. Finally, never use the underscore character or the space character in the file name of any EXCEL spreadsheet file or @RISK simulation results. Don't even ask why; just don't do it.

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