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Could anyone kindly answer the following question in detail :) Suppose that a stock price has an expected return of 13% p.a. and a volatility
Could anyone kindly answer the following question in detail :)
Suppose that a stock price has an expected return of 13% p.a. and a volatility of 25% p.a. The stock price today is $50. Calculate the following: a. The expected price tomorrow. the standard deviation of the stock price tomorrow and b. 95% confidence interval for the price tomorrow. Assume 252 trading days per year. b. The expected stock price next year, the standard deviation of the price next year and a 95% confidence interval for the price yearStep by Step Solution
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