Question The lognormal model for stock prices is given by S(4)= 100e012+0.22, where Z~ N(0, 1). Determine the value of o² in the model, the variance of stock's return. Question The lognormal model for stock prices is given by S(4) 100e0.12+0.22, where Z~ N(0, 1). Determine the stock's continuously compounded expected rate of appreciation.

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