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 simple return on the stock for one month?
A) 0.83
B) 1.01
C) 1.08
D) 1.13
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q2: Suppose that the stock price is stochastic
Q3: If <span class="ql-formula" data-value="x"><span class="katex"><span
Q4: Suppose returns on a stock are lognormally
Q5: Suppose returns on a stock are lognormally
Q6: Stock ABC is currently trading at
Q7: Consider a binomial tree in which
Q8: While stock returns are commonly modeled as
Q9: Suppose the returns on a stock
Q10: As the number of steps in the
Q11: Suppose you are modeling the price evolution