Using Normal to bound future stock price interval

[@Danielchirs]

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[@ArleneMaxwell-l2p]

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[@bionicturtle]

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[@stupidbiko]

Dear Sir, Sorry for stupid question, but if we have a lower interval price of $7.80 and upper interval price of $15.05 the midpoint will be ($15.05-$7.80)/2 + $7.80 = $11.425 suggesting the mean to be $11.425? Where does that come from please? I would have thought the mean in a perfectly symmetrical distribution to be the continuously compounded return of 8% = $10.83 Thanks

[@HoangNguyen-yb9ki]

The rate of return follows a normal distribution, which makes it symmetric. But the price of the stock (or the value of your investment) is not. (-2+2)/2=0; but (e^-2 + e^2)/2 is not equal to e^0. Hope it helps.

[@bipolar1989m]

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