A financial process related to a stock price subjects to a probabilistic behavior through a certain time interval which has been divided into a number of periods where the one step returm rates are statically independent and each one them follows exponential distribution where beginning value of stock price equals to 100$. Find the first level of deviation of the price after 3 periods such that the average value of price after two periods equals to 180$

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A financial process related to a stock price subjects to a probabilistic behavior through a certain
time interval which has been divided into a number of periods where the one step retum rates are
statically independent and each one them follows exponential distribution where beginning value
of stock price equals to 100$. Find the first level of deviation of the price after 3 periods such
that the average value of price after two periods equals to 180$
Transcribed Image Text:A financial process related to a stock price subjects to a probabilistic behavior through a certain time interval which has been divided into a number of periods where the one step retum rates are statically independent and each one them follows exponential distribution where beginning value of stock price equals to 100$. Find the first level of deviation of the price after 3 periods such that the average value of price after two periods equals to 180$
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