Suppose that you buy 100 shares of Apple today, which is currently traded at $130 a share.
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Question:
Suppose that you buy 100 shares of Apple today, which is currently traded at $130 a share. Suppose further that Apple’s stock price within a day is normally distributed with mean $130 (today’s price) and variance $4. That is Pricetomorrow = N(Pricetoday,4). How confident are you that you will not lose more than $500 within a day?
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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