You have bought a stock for a $100. You are expecting to get a return of 10% while the volatility of your stock is 20%. if you intend to sell the stock after one year. a- What is the stock price range...


You have bought a stock for a $100. You are expecting to get a return of 10% while the
volatility of your stock is 20%. if you intend to sell the stock after one year.
a- What is the stock price range (upper and lower bound) assuming that the stock returns
are normally distributed, and a two-tailed confidence interval of 90% ? explain your
answer.
b- What is the Value at Risk of this investment at a confidence interval of 90% and 95%?
explain your answer.
c- What are the similarities and differences in calculating the above questions (a and b)?
Please support your answer by drawing the needed figures showing each case.



Jun 04, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here