1. (5pts) A hedge fund purchased $1,000,000 of a stock. The daily log-returns are independently normal distributed with mean 0.05/253 and standard deviation 0.25/253. Then what is the probability that the stock will go above $1,100,000 after 253 trading days? (Use the standard normal table given in the last page of the exam and the following natural (base-e) logarithm values: log(10)=2.303,log(1.1)=0.095,log(0.1)=2.303. 1. (5pts) A hedge fund purchased $1,000,000 of a stock. The daily log-returns are independently normal distributed with mean 0.05/253 and standard deviation 0.25/253. Then what is the probability that the stock will go above $1,100,000 after 253 trading days? (Use the standard normal table given in the last page of the exam and the following natural (base-e) logarithm values: log(10)=2.303,log(1.1)=0.095,log(0.1)=2.303