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

question 16

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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