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A Stock Is Valued at $28

Question 17

Multiple Choice

A stock is valued at $28.00.The annual expected return is 9.0% and the standard deviation of annualized returns is 19.0%.If the stock is lognormally distributed,what is the expected median stock price after 4 years?


A) $28.00
B) $32.33
C) $40.13
D) $54.60

Correct Answer:

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