About continuously compounded rate of change in stock price

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The stock pays no dividend and has a volatility of 60% per annum and a continuously compounded return of 21%. Can you forecast the stock price in 10 days? Assume that the stock is currently selling for $48.27.

How would the stock price range with a 95% probability? What about the continuously compounded rate of change in the stock price?

Reference no: EM131337225

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