Question
A stock price is currently $60. Assume that the expected return from the stock is 25% and its volatility is 35%. What is the probability
A stock price is currently $60. Assume that the expected return from the stock is 25% and its volatility is 35%. What is the probability distribution for the rate of return (with continuous compounding) earned over a four-year period?
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(0.28875, 0.040625)
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(0.18875, 0.030625)
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(0.49975, 0.040665)
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(0.12895, 0.020956)
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None of the above
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
