A stock price is currently ($ 60) per share and follows the geometric Brownian motion (d P_{t}=mu
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A stock price is currently \(\$ 60\) per share and follows the geometric Brownian motion \(d P_{t}=\mu P_{t} d t+\sigma P_{t} d t\). Assume that the expected return \(\mu\) from the stock is \(20 \%\) per annum and its volatility is \(40 \%\) per annum. What is the probability distribution for the continuously compounded rate of return of the stock over 2 years? Obtain the mean and standard deviation of the distribution.
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