Question: Question 1 [6] Suppose that a share has an expected return of 18% per year and a volatility of 313% per year. The price at

Question 1 [6] Suppose that a share has an expected return

Question 1 [6] Suppose that a share has an expected return of 18% per year and a volatility of 313% per year. The price at the close of trading today was R. Calculate the following: 1.1 The expected share price at the close of trading tomorrow. [2] 1.2 The standard deviation of the share prioe at the close of trading tomorrow. Explain what the number means to a nontechnical friend. [2] 1.3 The 95% oondence limits for the share at the end of trading tomorrow. [2]

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