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Suppose that continuously compounded returns are normally distributed. A stock currently trades for $100, with an instantaneous expected return of 10.8% and standard deviation of
Suppose that continuously compounded returns are normally distributed. A stock currently trades for $100, with an instantaneous expected return of 10.8% and standard deviation of 21%. What is the expected percent rate of return to be earned over a one-year period? (round to two decimal places in percent form, so that "0.10435" would be entered as "10.44").
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