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  3. the current spot price of a stock is $33.00, the e

The current spot price of a stock is $33.00, the expected rate of return is 7.2%,...

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Advance Math

The current spot price of a stock is $33.00, the expected rateof return is 7.2%, and the volatility of the stock is 20%. Therisk-free rate is 3.8%.

(a) Find the 90%-confidence interval for the stock price in 6months.

(b) Compute the expected percent change in the stock over thenext 6 months.

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