Suppose that the price of a share verifies that (mu=16 %) and the volatility is (30 %).

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Suppose that the price of a share verifies that $\mu=16 \%$ and the volatility is $30 \%$. If the closing price of the share at a given day is $\$ 50$, compute:

(a) The closing expected value of the share for the next day

(b) The standard deviation of the closing price of the share for the next day

(c) A $95 \%$ confidence interval for the closing price of the share for the next day

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Quantitative Finance

ISBN: 9781118629956

1st Edition

Authors: Maria Cristina Mariani, Ionut Florescu

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Question Posted: Apr 20, 2024 05:57 AM

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Suppose that the price of a share verifies that (mu=16 %) and the volatility is (30 %).

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To compute the closing expected value standard deviation and confidence interval for the next days c...View the full answer

Quantitative Finance

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