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You have bought a stock for a $250. You are expecting to get a return of 12% while the volatility of your stock is
You have bought a stock for a $250. You are expecting to get a return of 12% while the volatility of your stock is 22%. if you intend to sell the stock after one year. a- What is the stock price range (upper and lower bound) assuming that the stock returns are normally distributed, and a two-tailed confidence interval of 95%? explain your answer. b- What is the Value at Risk of this investment at a confidence interval of 95%? explain your answer. What are the similarities and differences in calculating the above questions (a and b)? Please support your answer by drawing the needed figures showing each case. C-
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