Starting at some fixed time, let 1(n) denotes the price of an Indo-African Bank share at the end of n additional weeks, n >=1; and let the evolution of these prices assumes that the price ratios I (n)/l (n-1) for n>=1 are independent and identically distributed. lognormal random variables. Assuming this model, with lognormal parameters mean and sd, what is the probability that the price of the share at the end of the M weeks is higher than it is today? Mean= 0.013, sd= 0.046, M=4.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Starting at some fixed time, let l(n) denotes
the price of an Indo-African Bank share at the
end of n additional weeks, n >=1; and let the
evolution of these prices assumes that the
price ratios I (n)/l (n-1) for n>=1 are
independent and identically distributed.
lognormal random variables. Assuming this
model, with lognormal parameters mean and
sd, what is the probability that the price of the
share at the end of the M weeks is higher than
it is today?
Mean= 0.013, sd= 0.046, M=4.
Transcribed Image Text:Starting at some fixed time, let l(n) denotes the price of an Indo-African Bank share at the end of n additional weeks, n >=1; and let the evolution of these prices assumes that the price ratios I (n)/l (n-1) for n>=1 are independent and identically distributed. lognormal random variables. Assuming this model, with lognormal parameters mean and sd, what is the probability that the price of the share at the end of the M weeks is higher than it is today? Mean= 0.013, sd= 0.046, M=4.
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