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a.

Median price in one year is $0.841017.

b.

Mean price in one year is $1.540114.

c.

The geometric average gross discrete return (GAGDR) over the next year is 1.051271.

d.

The mean net discrete return (NDR) over the next year is 0.925143.

e.

The arithmetic average log gross discrete return (AALGDR) over the next year is 0.071271.

Price and Return Probability Density Functions Legend frequency = mean I = median AAGDR = 1.925143 o = SDLGDR = 1.1 Plmean = (b) Plmedian = (a) P1 = PO*exp(LGDR) = PO*(1+NDR) PO = 0.8 = current price GAGDR = (c) AAGDR = 1.925143 GDR = P1/PO = 1+NDR -1 medianNDR meanNDR = (d) NDR = (P1-PO)/PO = PO*exp(LGDR) LGDR = In(P1/PO) = In(1+NDR) AALGDR = (e) The arithmetic gross discrete return (AAGDR) is 192.5143% pa. The standard deviation of the log gross discrete returns (SDLGDR) is 110% pa. The current stock price is $0.80. Some labelled numbers have been deliberately replaced with letters in brackets corresponding to the answer choices below. Which of the below statements is NOT correct? All numbers are rounded to 6 decimal places. The expected future: Price and Return Probability Density Functions Legend frequency = mean I = median AAGDR = 1.925143 o = SDLGDR = 1.1 Plmean = (b) Plmedian = (a) P1 = PO*exp(LGDR) = PO*(1+NDR) PO = 0.8 = current price GAGDR = (c) AAGDR = 1.925143 GDR = P1/PO = 1+NDR -1 medianNDR meanNDR = (d) NDR = (P1-PO)/PO = PO*exp(LGDR) LGDR = In(P1/PO) = In(1+NDR) AALGDR = (e) The arithmetic gross discrete return (AAGDR) is 192.5143% pa. The standard deviation of the log gross discrete returns (SDLGDR) is 110% pa. The current stock price is $0.80. Some labelled numbers have been deliberately replaced with letters in brackets corresponding to the answer choices below. Which of the below statements is NOT correct? All numbers are rounded to 6 decimal places. The expected future

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