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John owns 10,000 shares of the HSBC stock. The current price is $40 per share. Assume that the stock's yearly mean return and volatility are

John owns 10,000 shares of the HSBC stock. The current price is $40 per share. Assume that the stock's yearly mean return and volatility are 7% and 15%, respectively.

  1. Let the worst-case price be at or below $32 per share in 3 months. What is the chance of the occurrence of the worst case?
  2. Let the best-case price be the price with a 5% chance of higher than the current in 3 months. What is the best-case price?

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