Question: Problem #12: We assume that the stochastic process for a stock price is an Arithmetic Brownian motion, with a drift of 53% [2 marks] and,

Problem #12: We assume that the stochastic process for a stock

Problem #12: We assume that the stochastic process for a stock price is an Arithmetic Brownian motion, with a drift of 53% [2 marks] and, diffusion of 33%. Find the probability that the stock price will be between 0.78 and 1.25 in 4 years. (A) 0.06 (B) 0.04 (C) 0.08 (D) 0.05 (E) 0.07 Problem #12: Select Save

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