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Suppose that a share has an expected return of 18% per year and a volatility of 30% per year. The p the close of trading
Suppose that a share has an expected return of 18% per year and a volatility of 30% per year. The p the close of trading today was R60. Calculate the following: rice at 1.1 The expected share price at the close of trading tomorrow 1.2 The standard deviation of the share price at the close of trading tomorrow. Explain what the number means to a non-technical friend. 12] 2] 1.3 The 95% confidence limits for the share at the end of trading tomorrow
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