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    How to predict financial markets using MS Excel

    The application of the excel functions can be extended for estimating probabilities between defined ranges.

    Synopsis

    To calculate the probability of returns, normal distribution appears appropriate as the asset returns can take both positive and negative values. However, contrary to returns, the asset prices have a lower zero bound.

    Quantifying the chances of making money in the financial markets hold enormous significance for investors, traders, experts, and analysts. Such chances are influenced by statistical randomness due to the interaction of a large number of micro and macro factors. Mathematically, such chances are estimated using probability. Probability is the likelihood of happening of an event that takes a value between 0 and 1. Closer the value of probability to
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