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 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
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
