How you would proceed and find this range

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Reference no: EM132020694

Consider a stock with an initial price of $100. Its price one year from now is given by S = 100 * exp(r), where the rate of return r is normally distributed with a mean of 0.1 and a standard deviation of 0.2. You need to find, with 95% confidence, the range of values that price S will take in a year from now. Explain carefully how you would proceed and find this range. ?

Reference no: EM132020694

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