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A stock price is currently $50. Assume that the expected return from the stock is 18% and its volatility is 30%. a. What is the

A stock price is currently $50. Assume that the expected return from the stock is 18% and its volatility is 30%.

a. What is the probability distribution for the natural log of the stock price in 2 years? Calculate the mean and standard deviation.

b. Determine the 95% confidence interval for the stock price in two years.

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