Starting at some fixed time, let I(n) denotes the price of an Indo-African Bank share at...
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Starting at some fixed time, let I(n) denotes the price of an Indo-African Bank share at the end of n additional weeks, n 21; and let the evolution of these prices assumes that the price ratios I(n)/I(n-1) for n 21 are independent and identically distributed lognormal random variables. Assuming this model, with lognormal parameters and o, what is the probability that the price of the share at the end of the M weeks is higher. than it is today? [6] G: G: G G Gs 0,011, o = 0.048, M = 3. 0.012, 0.047, M- 4. = 0.013, 0.046, M = 4. -0.014, 0.045, M 5. 0.015, 0.044, M4. Starting at some fixed time, let I(n) denotes the price of an Indo-African Bank share at the end of n additional weeks, n 21; and let the evolution of these prices assumes that the price ratios I(n)/I(n-1) for n 21 are independent and identically distributed lognormal random variables. Assuming this model, with lognormal parameters and o, what is the probability that the price of the share at the end of the M weeks is higher. than it is today? [6] G: G: G G Gs 0,011, o = 0.048, M = 3. 0.012, 0.047, M- 4. = 0.013, 0.046, M = 4. -0.014, 0.045, M 5. 0.015, 0.044, M4.
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Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
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