Question: 13: We assume that the stochastic process for a stock price is a Geometric Brownian motion, with expected return of 20% and, volatility of 21%.

13: We assume that the stochastic process for a stock price

13: We assume that the stochastic process for a stock price is a Geometric Brownian motion, with expected return of 20% and, volatility of 21%. The stock price is currently $90. (a) Find the expected value of the stock price in 2 years. (b) Find the probability that the stock price will be above $147 in 2 years. (A) 131.26 (B) 133.26 (C) 135.26 (D) 132.26 (E) 134.26 13(a): Select Part (a) choices. (A) 0.31 (B) 0.34 (C) 0.33 (D) 0.32 (E) 0.35 13(b): Select 1 Part (b) choices. 13: We assume that the stochastic process for a stock price is a Geometric Brownian motion, with expected return of 20% and, volatility of 21%. The stock price is currently $90. (a) Find the expected value of the stock price in 2 years. (b) Find the probability that the stock price will be above $147 in 2 years. (A) 131.26 (B) 133.26 (C) 135.26 (D) 132.26 (E) 134.26 13(a): Select Part (a) choices. (A) 0.31 (B) 0.34 (C) 0.33 (D) 0.32 (E) 0.35 13(b): Select 1 Part (b) choices

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