Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

A stock is valued at $28.00. The annual expected return is 9.0% and the standard deviation of annualized returns is 19.0%. If the stock is

A stock is valued at $28.00. The annual expected return is 9.0% and the standard deviation of annualized returns is 19.0%. If the stock is lognormally distributed, what is the expected price after 4 years? A) $28.00 B) $32.33 C) $40.13 D) $54.60

The answer is C. Can you please show the steps with the formula? Thanks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Make Money With Junk Bonds

Authors: Robert Levine

1st Edition

007179381X,0071793828

More Books

Students also viewed these Finance questions

Question

★★★★★

Develop two use scenarios for the DFD in exercise E in Chapter 5.

Answered: 1 week ago

Question

★★★★★

Vision and visionary leadership.

Answered: 1 week ago

Question

★★★★★

What is meant by the laws of returns to scale? What are the factors responsible for increasing returns to scale? What are the reasons for decreasing returns to scale?

Answered: 1 week ago

Question

★★★★★

The River City Fire Department (RCFD) fights fires and provides a variety of rescue operations in the River City metropolitan area. The RCFD staffs 13 ladder companies, 26 pumper companies, and...

Answered: 1 week ago

Question

★★★★★

Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $14,200 atto. Project S has an expected life of 2 years with after-tax cash inflows of $7.400 and...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

1. What was the Kanthal president, Ridderstrale, attempting to accomplish with the Account Management System? Are these sensible goals? 2. Why did Ridderstrale feel that the previous cost system was...

Answered: 1 week ago

Question

★★★★★

What are the key stages in food production, from sourcing ingredients to serving a dish to a customer in a restaurant?

Answered: 1 week ago

Question

★★★★★

If operating income is minus, e.g., -120000, tax rate is 11.7%, how to compute net income? operating income (before tax) -$120000 tax ------------- (11.7%) Net Income -------------

Answered: 1 week ago

Question

★★★★★

What does it mean when experimental data does not support a hypothesis? What would be the subsequent steps of an experiment if the data does not support the experiment's hypothesis? Are hypotheses...

Answered: 1 week ago

Question

★★★★★

Q1- What is your analysis of Walmart's Supply Chain? Were the company's supply chain capabilities a source of competitive advantage? Why or why not? Q2- How was Walmart doing? How did it compare to...

Answered: 1 week ago

Previous Question Next Question