Question: 6. Suppose that continuously compounded returns are normally distributed. A stock currently trades for $100, with an expected return of 12% and standard deviation of

6. Suppose that continuously compounded returns are normally distributed. A stock currently trades for $100, with an expected return of 12% and standard deviation of 20%. What is the probability distribution for the rate of return (with continuous compounding) to be earned over a one-year period?

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