Question
Suppose that a stock price has an expected return of 15% per annum and a volatility of 30% per annum. When the stock price at
Suppose that a stock price has an expected return of 15% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is $60, calculate the following:
(a) The expected stock price at the end of the next day.
(b) The standard deviation of the stock price at the end of the next day.
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The Handbook Of Credit Risk Management
Authors: Sylvain Bouteille, Diane Coogan-Pushner
2nd Edition
1119835631, 978-1119835639
