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Suppose that the continuously compounded return from time 0 to time t is normal with mean (a-5-2o3t and variance 2t. The stock pays dividend at
Suppose that the continuously compounded return from time 0 to time t is normal with mean (a-5-2o3t and variance 2t. The stock pays dividend at the annual continuously compounded yield of 3%. The annual variance is 0.09. Initially, the stock was trading for $75. Suppose that the mean for the continuously compounded 2-year return is 0.07. Also, suppose that the dividends are reinvested in the stock. Find the median of the investor's position at time 4 years. Suppose that the continuously compounded return from time 0 to time t is normal with mean (a-5-2o3t and variance 2t. The stock pays dividend at the annual continuously compounded yield of 3%. The annual variance is 0.09. Initially, the stock was trading for $75. Suppose that the mean for the continuously compounded 2-year return is 0.07. Also, suppose that the dividends are reinvested in the stock. Find the median of the investor's position at time 4 years
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