Multiple Choice
Suppose returns on a stock are lognormally distributed with expected (annualized) mean of of 0.10 and standard deviation of 0.20.What is the expected continuously compounded return on the stock for one month?
A) 0.100%
B) 0.333%
C) 0.833%
D) 1.667%
Correct Answer:
Verified
Correct Answer:
Verified
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