Question: please I need help at least give certain formula to solve Suppose a hedge fund owns $1,000,000 of stock and used $50,000 of its own

please I need help at least give certain formula

please I need help at least give certain formula to solve

Suppose a hedge fund owns $1,000,000 of stock and used $50,000 of its own capital and $950,000 in borrowed money for the purchase. Suppose that if the value of the stock falls below $950,000 at the end of any trading day, then the hedge fund will sell all the stock and repay the loan. This will wipe out its $50,000 investment. The hedge fund is said to be leveraged 20:1 since its position is 20 times the amount of its own capital invested. Suppose that the daily log returns on the stock have a mean of/0.05/year) and a standard deviation of 0.23/year. These can be converted to rates per trading day by dividing by 253 and 253, respectively. Problem 4 What is the probability that the value of the stock will be below $950,000 at the close of at least one of the next 45 trading days

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