Question
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.
- 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?
- 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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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
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