Compute the expected percent change in the stock

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The current spot price of a stock is $50, the expected rate of return of the stock is 7%, and the volatility of the stock is 20%. The risk- free rate is 5%. Find an 80%-confidence interval for the stock price in 3 months. Also compute the expected percent change in the stock between months 0 and 6.

Reference no: EM13837205

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