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8. Suppose that current stock price is 100 $. Its annualized volatility is 23 % and annualized return 12 % i.e. we assume that the

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8. Suppose that current stock price is 100 $. Its annualized volatility is 23 % and annualized return 12 % i.e. we assume that the stock price follows dXt= 0.12 Xt dt+0.23 Xt dWt. 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) 8. Suppose that current stock price is 100 $. Its annualized volatility is 23 % and annualized return 12 % i.e. we assume that the stock price follows dXt= 0.12 Xt dt+0.23 Xt dWt. 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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