Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Explain Markov's properties on share price behaviour (2 points) 2. The current price of a share is $37 and its expected return per annum is
Explain Markov's properties on share price behaviour (2 points)
2. The current price of a share is $37 and its expected return per annum is 5%. Standard deviation of its returns per annum is 20%. Estimate the expected share price and the expected variation of the share price in three months. (4 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started