Question: : We assume that the stochastic process for a stock price is a Geometric Brownian motion, with expected return of 28% and, volatility of 19%.

: We assume that the stochastic process for a stock price is a Geometric Brownian motion, with expected return of 28% and, volatility of 19%. The stock price is currently $86. (a) Find the expected value of the stock price in 3 years. (b) Find the probability that the stock price will be above $133 in 3 years. (A) 198.21 (B) 199.21 (C) 197.21 (D) 201.21 (E) 200.21 :): Select Part (a) choices (A) 0.88 (B) 0.87 (C) 0.89 (D) 0.85 (E) 0.86 ): Select 1 Part (b) choices Save

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