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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