Th e current (time zero) price of one share of Farrell Corporation?s common stock is $25. Th e price is expected to increase by $5 over the coming year. Th e company is not expected to pay a dividend during the year. Th e standard deviation of the expected price change is $3. Th e distribution of the end-of-year possible prices is approximately normal. Determine the probability of earning a return greater than 30 percent over the coming year from your investment in Farrell common stock.
Paper#8636 | Written in 18-Jul-2015Price : $25