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Assume That a Stock Has Lognormal Returns with Mean μ=0.10\mu = 0.10

Question 7

Multiple Choice

Assume that a stock has lognormal returns with mean μ=0.10\mu = 0.10 and standard deviation σ=0.20\sigma = 0.20 .The current stock price is $50.What is a 95% confidence interval for the stock price in six months?


A) 37.90,65.97
B) 37.81,73.08
C) 39.84,69.35
D) 40.12,60.24

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