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8. Suppose that current stock price is 100 5. Its annualized volatility is 22 % and annualized return 12 % i.e. we assume that the

8. Suppose that current stock price is 100 5. Its annualized volatility is 22 % and annualized return 12 % i.e. we assume that the stock price follows Xm = 0.12 XI dt+0.22 X1 dWL Write the probability density function for the stock in 1 year. What is the mean and standard deviation of the terminal stock price? (standard deviation of price. not of return)

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