Assume That a Stock Has Lognormal Returns with Mean $\mu = 0.10$

question 9

Multiple Choice

Assume that a stock has lognormal returns with mean $\mu = 0.10$ and standard deviation $\sigma = 0.20$ .The current stock price is $50.What is a 95% confidence interval for the stock price in six months?

• A)37.90,65.97
• B)37.81,73.08
• C)39.84,69.35
• D)40.12,60.24

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Definitions:

Inverse Demand

A mathematical function that expresses the price of a good or service as a function of the quantity demanded, showing how price changes with demand.

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Total Cost

The total expenses associated with manufacturing goods or services, encompassing both constant and fluctuating costs.

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The germinated beans used commonly in Asian cuisines, known for their crunchy texture and nutritional benefits.