Current price of a stock is $120. The probability distribution of returns on the stock is normal with the expected value of 14% and standard deviation of 40%. 

What is the probability that the stock price in one year will be more than $200?

What is the probability that it will be less than $80? 

Assume that the stock will not pay any dividends during the year

Answer rating: 100% (QA)

To find the probabilities we can use the normal distribution Given that the expected return mean is ... View the full answer