We mentioned in the previous sections that in finance, returns are assumed to follow a normal distribution, whereas prices follow a lognormal distribution. The stock price at time *t+1* is a function of the stock price at *t*, mean, standard deviation, and the time interval as shown in the following formula:

In this formula, is the stock price at *t+1*, is the expected stock return, is the time interval (), *T* is the time ...

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