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1. A stock price is currently $60. Assume that the expected return from the stock is 15% and its volatility is 25% per annum. What

1. A stock price is currently $60. Assume that the expected return from the stock is 15% and its volatility is 25% per annum. What is the probability distribution of the stock price, ST, in six months? ( , 2 ) = ( , )

Calculate a 95% (with 1.96 standard deviation) confidence interval of the stock price, S_T, in six months.

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