Explain normal distribution of random numbers
Illustrates an example to explain normal distribution of random numbers?
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You have three hats containing usually distributed random numbers. There one hat’s numbers have a mean of zero and the standard deviation of 0.1. It is hat A. The other hat’s numbers have a mean of zero and the standard deviation of 1. It is hat B. The last hat’s numbers have a mean of zero and the standard deviation of 10. It is hat C. You don’t know which that is which.
You choose a number out of one hat. This is −2.6.
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
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