Question: Develop profitability i annual rate model, assuming that (1+ i) in casesize is subject to a lognormal distribution and knowing that in recent years the

Develop profitability i annual rate model, assuming that (1+ i) in casesize is subject to a lognormal distribution and knowing that in recent years the average value of the return is i = 0.07 . What parameters μ and σ² (standard deviation) must be used to with with a probability of 15%, it can be assumed that the return next year will be 0.055

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