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A Stock Is Valued at $55

Question 16

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 median stock price after 3 years?


A) $57.67
B) $67.67
C) $77.67
D) $87.67

Correct Answer:

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