1. A stock price is $30, the expected return is 18% per annum and the volatility is 20% per annum. What is the mean of the logarithm of the stock price in two years?

a. 30

b. 41.77

c. 3.40

d. 3.72

e. None of the above.

2. A stock price is $30, the expected return is 18% per annum and the volatility is 20% per annum. What is the standard deviation of the logarithm of the stock price in two years?

a. 0.20

b. 0.28

c. 0.40

d. 0.64

e. None of the above.