Probability of selling a stock higher than you bought it

[moonman239]

Homework Statement

I buy a stock at Apple Inc. History shows that the average daily stock price is $297 with a variance of $5. If I buy a stock at $300, what is the probability that after 10 years I will be able to sell the stock at at least that price?

Homework Equations

The Attempt at a Solution

I know of one way to solve this problem: Gaussian distribution. I know that I can calculate the probability of $300, $301, $302,...$n with a simple equation. I just want to know if there is another way of doing it.

 

[HallsofIvy]

Yes, use Gaussian distribution. But why calcuate "$300, $301, $302, ..." separately? Any good table of the normal distribution will give you the probability that "x> 300" directly. What did you get for the "standard normal" variable for x= 300?

(Since you are using the "historic" values, the "10 years" you owned the stock is irrelevant.)