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The log returns on a stock are normally distributed. You are given the following parameters: Mean = 0.1 Standard deviation = 0.13 What is the
The log returns on a stock are normally distributed. You are given the following parameters: Mean = 0.1 Standard deviation = 0.13 What is the distribution of the one-period gross returns? What is the probability that the gross return is 1.2 or more? Assume the log-returns are also independent, what is the 0.85-quantile of the 2-period log return
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