Sensitivity Analysis
Response to the following problem:
You have accumulated $35,000 in a mutual fund account that pays 10% interest. You are offered the opportunity to buy 100 ounces of gold at $350 per ounce. The price of gold is expected to rise to $700 per ounce by the end of five years. You realize, however, that this is only an estimate
To what price would gold have to rise in order to earn a 10% return?