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Webster Company stock doesn't pay any dividends and it sells for $55 share. The continuously compounded expected return of stock is .12, with standard deviation of 0.22. Find out the probability that the stock will be selling for more than $60 after 1 year. The relationship between the current stock price S0, future price ST after time T, and continuously compounded rate of return r, is: ST = S0erT.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M918216

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