(Answered) A stock price follows geometric brownian motion with an

Management Studies

A stock price follows Geometric Brownian Motion with an expected return of 16% p.a. andavolatility of 30% p.a. Today'sstockpriceis$50. Whatisthe expectedstockpriceat the end of tomorrow's trading? Whatisthe variance of tomorrow's end of tradingstockprice? Find two numbers such that tomorrow's end of tradingstockpricelies between those numbers with probability 0.95.

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