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    Stock Price Forecasting

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    Please help with the following.

    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

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

    Solution Preview

    Please see the attachment for solution.

    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