Solution-What is the probability distribution of the stock

What is the probability distribution of the stock price

Assignment Help Finance Basics

Reference no: EM131060890

A variable is currently 40

It follows a Markov process

Processis stationary (i.e. the parameters of the process do not change as we move through time)

At the end of 1 year the variable will have a normal probability distribution with mean 40 and standard deviation 10

Questions

What is the probability distribution of the stock price at the end of 2 years? ½ years? ¼ years? Dt years?

Reference no: EM131060890

Questions Cloud

Calculate the maximum bending stress smax in the strip : By what percent does the stress increase or decrease if the thickness of the strip is increased by 1/32 in.?

Roles in venturing into new business markets : Describe the term institution in business and explain its roles in venturing into new business markets and how weak institution can act as barrier to new entry.

Project requires an initial cash outlay : A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project’s NPV? Show your work.

Which stock has the highest capital gains yield : Chapman Tech is expected to pay a$1.20 dividend at the end of the year. The required return on chapmans stock is 11% and its dividend is expected to grow at a constant rate of 7% per year. which stock has the highest dividend yield (DY)? which stock ..

What is the probability distribution of the stock price : What is the probability distribution of the stock price at the end of 2 years? ½ years? ¼ years? Dt years?

How they spurred the development of aviation technology : Summarize the military aspects of aviation during this period. Compare this period of tension with the actual wars in the twentieth century and how they spurred the development of aviation technology.

Organizational culture of the company : Create a research paper that discusses how one company (of your choice) illustrates social responsibility in its environment. Discuss what leadership does to promote social responsibility and how this ties to ethics and the organizational culture of..

Determine the plastic moment mp for a beam : Determine the plastic moment MP for a beam having the cross section shown in the figure if σY= 210 MPa.

Apple profit-maximizing quantity and price : What are Apple's profit-maximizing quantity and price? Show the profit-maximizing outcome on the previous graph.

User Account

All Pages

What is the probability distribution of the stock price

Reference no: EM131060890

Reference no: EM131060890

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT