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A Stock Is Valued at $55

Question 12

Multiple Choice

A stock is valued at $55.00.The annual expected return is 12.0% and the standard deviation of annualized returns is 22.0%.If the stock is lognormally distributed,what is the expected price after 3 years?


A) $78.83
B) $88.83
C) $98.83
D) $108.83

Correct Answer:

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