A Stock Is Valued at $28

question 2

Multiple Choice

A stock is valued at $28.00.The annual expected return is 9.0% and the standard deviation of annualized returns is 19.0%.If the stock is lognormally distributed,what is the price of the stock given a one standard deviation move up after 4 years?

• A) $28.00
• B) $32.33
• C) $40.13
• D) $54.60

---

Definitions:

ATP

Adenosine triphosphate, a molecule that carries energy within cells, used for metabolic processes.

Energy Currency

A term often referring to ATP (Adenosine Triphosphate), the primary molecule used to store and transfer energy within cells.

Phosphate Bonds

High-energy chemical bonds found in many biological molecules such as ATP, which release energy when broken.

Chemical Work

The process of using and converting chemical energy to perform tasks within a cell, such as synthesizing biomolecules.