Stepping out the expected return

You previously calculated the volatility and simulated the stock prices for the ABC healthcare and pharmaceutical company. You used a random normal estimation for that simulation. In these exercises, you will figure out the most likely stock prices and show that they are log-normally distributed.

First, add the expected return (k) value for the stock. Next, use =exp((ln(Stock Price)+k*Time Horizon)-4*Volatility*sqrt(Time Horizon)) to calculate minimum and maximum values for the stock.