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a. Boeing Company’s stock is currently trading at $160. Assume that the expected return on the stock is 13.5% per annum and its volatility is 22% per annum. What is the probability distribution for the stock price 12 months from now? Calculate the mean and standard deviation of the distribution. Determine the 99% confidence interval.
b. Repeat the above calculations by using a volatility of 25%.
c. Compare the midpoint of the intervals in a) and b) with the expected stock price and explain why the midpoint is different from the expected stock price.
Mortgage payments are made monthly. What is the monthly amount of your mortgage payment?
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If the annuitant dies after annuity benefit payments have started under a “pure life annuity” settlement option
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