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Trading stock price lies between numbers

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A stock price follows Geometric Brownian Motion with an expected return of 16% p.a. and a volatility of 30% p.a. Today's stock price is $50. What is the expected stock price at the end of tomorrow's trading? What is the variance of tomorrow's end of trading stock price? Find two numbers such that tomorrow's end of trading stock price lies between those numbers with probability 0.95.

Reference no: EM131180554

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