An investor purchased a non-dividend-paying stock which has coutinously compounded expected annual return 12% and volatitliy 35%.

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(a) What is the probability that the investor earns money in 3 months?

(b) What is the probability that the investor earns money in 6 months?

(d) What is the probability that the investor earns money in a year?

(e) What pattern can you nd?

Posted Date: May 13, 2024 03:22 AM

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An investor purchased a non-dividend-paying stock which has coutinously compounded expected annual return 12% and volatitliy 35%.

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