Suppose that the change in stock price is described by an


1. Suppose that the change in stock price is described by an It process such that

The stock pays no dividend and has a volatility of 60% per annum and a continuously compounded return of 21%. Can you forecast the stock price in 10 days? Assume that the stock is currently selling for $48.27.

2. How does the natural logarithm of the stock price fit into the data as in (1)?

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Financial Accounting: Suppose that the change in stock price is described by an
Reference No:- TGS02136972

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