The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure that the price of the stock will be between $60 and $82, then what is the variance of the stock price? (Round answer to 3 decimal places, e.g. 52.750.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...
icon
Related questions
Question

The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure that the price of the stock will be between $60 and $82, then what is the variance of the stock price? (Round answer to 3 decimal places, e.g. 52.750.)

Variance of stock price   $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Risk and Return
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning