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
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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.
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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 ...
Purchase this Solution
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