Question: 3. Suppose that a stock price has an expected return of 12% per annum and a volatility of 28% per annum. When the stock price

3. Suppose that a stock price has an expected return of 12% per annum and a volatility of 28% per annum. When the stock price at the end of a certain day is $45, calculate the following:

a. The expected stock price at the end of the next day.

b. The standard deviation of the stock price at the end of the next day.

c. The 95% confidence limits for the stock price at the end of the next day.

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