Stock price forecasting


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Suppose that a stock price has an expected return of 16% per annum and a volatility of 30% per annum. 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

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Microeconomics: Stock price forecasting
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