A stock price is currently $50. Assume that the expected return from the stock is 18% and its volatility is 30%. What is the probability distribution for the stock price in 2 years? Calculate the mean and standard deviation distribution. Determine the 95% confidence interval.© BrainMass Inc. brainmass.com October 10, 2019, 4:27 am ad1c9bdddf
The solution illustrates the method of determination of the probability distribution for the stock price and its mean and standard deviation.