Question
The logarithmic return for a stock is normal with an annualized mean of 12% and an annualizedstandard deviation of50%. Assume you were thinking of buying
The logarithmic return for a stock is normal with an annualized mean of 12% and an annualizedstandard deviation of50%.
Assume you were thinking of buying the stock. What is the probability that in six months time you will lose money? Show each step of your calculation.
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
