A Stock Is Valued at $55

question 13

Multiple Choice

A stock is valued at $55.00.The annual expected return is 12.0% and the standard deviation of annualized returns is 22.0%.If the stock is lognormally distributed,what is the price of the stock given a one standard deviation move up after 3 years?

• A) $64.41
• B) $74.41
• C) $84.41
• D) $94.41

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Definitions:

Readability and Comprehension

The ease with which a reader can understand written text and the extent to which they can grasp its meaning.

Words Per Sentence

The average number of words contained in a sentence, used as a measure of sentence complexity or readability.

Printed Lines

Text or images reproduced on paper or another surface using a printing process.

Obscuring Meaning

The act of making a message or information less clear and harder to understand, often intentionally.