Question
The price of a share is currently $50. Assume that the stock's expected return is 18% per year and its volatility is 30% per year.
The price of a share is currently $50. Assume that the stock's expected return is 18% per year and its volatility is 30% per year. What is the probability distribution of the stock price in two years? Find the mean and standard deviation of the distribution. Determine the 95% confidence interval.
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
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