# The following table shows a possible sequence of stock pricesduring 21 consucutive trading days: Days 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Closing stock price

in dollars 20.00 20.10 19.90 20.00 20.50 20.25 20.90 20.90 20.90 20.75 20.75 21.00 21.10 20.90 20.90 21.25 21.40 21.40 21.25 21.75 21.75 22.00

an exected return of 16% per annum. A company’s cash position.1 per month and a variance rate of 0. What are the probability distribuntions of the cash osition after 1 month. b. and a volatility of 20% per annum. follows a generalized Wiener process with a drift rate of 0.16 per month. c. After 6 months. (4) . a. (10) .Calculate estimate the volitality of stock from historical data (20) Consider a stock with an initial price of \$40. After 1 year? (2 each) Suppose volitality of a stock is 30% er annum and the current stock price is \$50. Find the 95% confidence interval about range of stock price in 6 months. The initial cash position is 2. measured in millions of dollars.0. Find the standard deviation of the percentage change in the stock price in 1 week.