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The lognormal model for stock prices is given by S(4) = 100e0.12+0.2Z, where Z~ Determine the stock's continuously compounded expected rate of appreciation. N(0,


The lognormal model for stock prices is given by S(4) = 100e0.12+0.2Z, where Z~ Determine the stock's continuously compounded expected rate of appreciation. N(0, 1). Possible Answers A Less than 0.04 B At least 0.04 but less than 0.06 C At least 0.06 but less than 0.08 D At least 0.08 but less than 0.10 E At least 0.10

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