Question: 5.A stock price has an expected return 12% per year and volatility of 25% per year. Currently the stock price is $40. Assume 252 days

 5.A stock price has an expected return 12% per year and

5.A stock price has an expected return 12% per year and volatility of 25% per year. Currently the stock price is $40. Assume 252 days per year. a) What is the expected stock price? b) What is the width of the 95% confidence interval forth stock price at the end of one day

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!