If the continuously compounded return on a stock worth $1 currently for a preset interval of time
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If the continuously compounded return on a stock worth $1 currently for a preset interval of time is distributed normally as follows: r ∼ N(μ, σ2) ≡ N(0.1, 0.22), then what are
(a) The expected price of the stock after one interval.
(b) The variance of the stock price?
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