Mean and standard deviation of logarithm of stock price

Reference no: EM13120191

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.

Reference no: EM13120191

Questions Cloud

Probability of defective resistors- demoivre-laplace theorem : Probability of Defective Resistors: DeMoivre-Laplace Theorem, A manufacturer of electronic equipment buys 900 resistors for which the probability of any single resistor being defective is p = 0.01.

Find out the washer is at rest with respect to the crate : As the crate is sliding down the ramp, you find out the washer is at rest with respect to the crate when the string makes an angle of 73 with the top of the crate.

How is she taxed on the distribution : Lark Corporation is a calendar year taxpayer. At the beginning of the current year, Lark has accumulated E & P of $330,000. The corporation incurs a deficit in current E & P of $460,000 that accrues ratably throughout the year. On June 30, Lark di..

Calculate the energy in joules : Calculate the energy in joules and calories required to heat 24.0g water from 20.0C to 27.7C

Mean and standard deviation of logarithm of stock price : 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?

Probability of name being on one of twenty tickets : There are 137 tickets in a hat and my name is on 3 of them. If someone draws 20 tickets out of the hat, what is the probability of my name being on one of those 20tickets.

Special-order merchandise on credit : Part 1 On July 1, 2010, Wallace Company, a calendar-year company, sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer.

What is the ph of the resulting solution : If you mix 50mL of 0.34M HCN with 100mL of 0.17M KOH what is the pH of the resulting solution. (Ka=4.0 x 10^-10)

Equations for word problems : The president of a certain university makes three times as much money as one of the department heads. If the total of their salaries is$ 200.000, find each worker's salary

User Account

All Pages