A stock price is currently $40 Assume that the expected return from the stock is 15 and its volatility is 25 What is the probability distribution for the rate of return (with continuous compounding) earned over a one year period ...

In this case and From equation 134 the probabilit ...

A stock price is currently $40. Assume that the expected return from the stock is 15% and

Question:

A stock price is currently $40. Assume that the from the stock is 15% and its volatility is 25%. What is the probability for the rate of return (with continuous compounding) earned over a one-year period? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...