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Mr. Jones has just bought 260 shares in a hi-tech stock that is currently valued at $60 per share. Financial analysis indicates that the expected
Mr. Jones has just bought 260 shares in a hi-tech stock that is currently valued at $60 per share. Financial analysis indicates that the expected annual return on the stock is 15% and the volatility is 12% per annum. The return is known to be lognormally distributed. Assuming that the return and volatility remain stable for the next three years, find the probability that Mr. Jones investment will be worth at least $17,000 in 3 years' time.
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