Distribution assumptions of the bsm model

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A stock has an expected return (μ) of 17% per annum and a standard deviation (volatility, σ) of 37% per annum. Under the probability distribution assumptions of the BSM model:

A) Compute the mean and standard deviation of the continuously compounded rate of return earned over a one-year period (answer in % and round to the nearest tenth).

Mean is: %; Standard deviation is: %

B) Construct a 95% confidence interval for the continuously compounded rate of return earned over a one-year period (answer in % and round to the nearest tenth).

95% confidence interval is from: % to: %

Reference no: EM133111655

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