Calculate the expected stock price and standard deviation

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Reference no: EM1371879

Assume that a stock price has an expected return of 16% per year and a volatility of 30% per year. When the stock price at the end of a certain day is $50, calculate the following: 1) the expected stock price at the end of the following day.

2) the standard deviation of the stock at the end of the next day

3)the 95% confidence limits for the stock price at the end of the next day

 

Reference no: EM1371879

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