Consider a security with the stock prices S(1) = 80 with probability 1/8 90 with probability 2/8

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Consider a security with the stock prices

S(1) =

80 with probability 1/8

90 with probability 2/8

100 with probability 3/8

110 with probability 2/8

What is the current price of the stock for which the standard deviation

would be 18%

Posted Date: May 19, 2024 01:07 AM

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Consider a security with the stock prices S(1) = 80 with probability 1/8 90 with probability 2/8

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