easy · Quantitative Finance stochastic
A stock that currently trades at S_0 = 100 is assumed to follow Geometric Brownian Motion with an expected return μ = 10% and volatility σ = 20%.
What is the expected price of the stock in one year, E[S_1]?
- 110.52
- 110.00
- 108.33
- 122.14
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