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Problem 4(10pt). You are given the following 13 weekly observations on the price of 3M Company shares. Assuming that the stock follows the lognormal model

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Problem 4(10pt). You are given the following 13 weekly observations on the price of 3M Company shares. Assuming that the stock follows the lognormal model ln(St/S0)N(t,2t) estimate and using this data. Suppose that =0 and there are 52 weeks in a year. Compute an estimate for the continuously compounded rate of return on the expected value of the stock i.e. an estimate for . Problem 4(10pt). You are given the following 13 weekly observations on the price of 3M Company shares. Assuming that the stock follows the lognormal model ln(St/S0)N(t,2t) estimate and using this data. Suppose that =0 and there are 52 weeks in a year. Compute an estimate for the continuously compounded rate of return on the expected value of the stock i.e. an estimate for

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