What about the continously compounded rate of change

Reference no: EM13266756

Assume that the change in the natural logarithm of the stock price follows according to a normal distribution that the annual mean return is 20% with a volatility of 80%. If the stock is currently selling for $65, what do you think the stock price will range with a 95% probability over the next two months? what about the continously compounded rate of change in the stock price?

Reference no: EM13266756

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