Suppose that a stock price has an expected return of 16% per annum and a volatility of
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Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $50, calculate the following: -
(a) The expected stock price at the end of the next day
(b) The standard deviation of the stock price at the end of the next day
(c) The 95 % confidence limits for the stock price at the end of the next day?
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Sufiyan Ahmed Tariq
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