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Probability of a jump in any particular trading day

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Assume that over short periods of time, the stock price is approximately normally distributed with mean return of 10% per year and annual standard deviation of 30%.

Suppose that the expected number of discrete stock price jumps is 2 per year. What would be the probability of a jump in any particular trading day? Assume 250 trading days per year and express your answer as a decimal, not a percentage.

Reference no: EM132853779

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