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# Stock Price Forecasting

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Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is \$50, calculate the following:

1) the expected stock price at the end of the following day.

2) the standard deviation of the stock at the end of the next day

3) the 95% confidence limits for the stock price at the end of the next day

https://brainmass.com/economics/estimation-and-forecasting/stock-price-forecasting-460176

#### Solution Preview

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Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. When the stock price at the end of a certain day is \$50, calculate the following:
1) the expected stock price at the end of the following day
2) the standard deviation of the stock at the end of the ...

#### Solution Summary

The posting helps with stock price forecast processes. This solution describes the determination of expected stock price, standard deviation of the stock and the 95% confidence limits for the stock price. Step by step calculations are given.

\$2.19