Question: Suppose a stock has annual expected return and standard deviation mu = 0.20 and sigma = 0.25. The current price of the stock is s

Suppose a stock has annual expected return and standard deviation mu

Suppose a stock has annual expected return and standard deviation mu = 0.20 and sigma = 0.25. The current price of the stock is s = $50. Suppose that delta t = 1week. a. Find the distribution of the return of the stock during delta t. b. Simulate the path of the stock from now until 1 year from now (52 weeks). Submit the random samples and the plot of the price of the stock against time

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