Atlanta company stock-probability

Reference no: EM13100485

Please use Microsoft Excel for these questions and be as detailed as possible. Each cell in the Excel sheet has to display how we came up with that number, unless given in the question.

Atlanta Company stock is expected to follow an exponential growth rate. The relationship between the current stock price P0, future price PT after time T, and the continuously compounded rate of return r, is: PT = P0erT. The stock does not pay any dividends and it sells for $55 a share. The continuously compounded expected return of the stock is 13%, with standard deviation of 35%. Find the probability that the stock will be selling for more than $65 after one year.

Reference no: EM13100485

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