Calculate the expected stock price and standard deviation/Managerial Economics
Assume that a stock price has an expected return of 16% per year and a volatility of 30% per year. When the stock price at the end of a certain day is $50, calculate the following: 1) the expected stock price at the end of the following day.
2) the standard deviation of the stock at the end of the next day
3)the 95% confidence limits for the stock price at the end of the next day
