Multiple Choice
Use the table below to answer the following question(s) .
Below is the spreadsheet for a portfolio allocation model.
![Use the table below to answer the following question(s) . Below is the spreadsheet for a portfolio allocation model. Assume that the distributions of life insurance annual return is uniform distribution with minimum 4% and maximum 6%, bond mutual funds annual return is normal with mean 7% and standard deviation 1%, stock mutual funds annual return is lognormal with mean 11% and standard deviation 4%. -What is the value of mode obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.] A) $ 6,553.02 B) $ 5,848.24 C) $ 5,281.79 D) $ 7,025.86](https://d2lvgg3v3hfg70.cloudfront.net/TB3611/11ea30b2_921f_544c_b0fd_25a805260963_TB3611_00_TB3611_00_TB3611_00_TB3611_00_TB3611_00.jpg)
Assume that the distributions of life insurance annual return is uniform distribution with minimum 4% and maximum 6%, bond mutual funds annual return is normal with mean 7% and standard deviation 1%, stock mutual funds annual return is lognormal with mean 11% and standard deviation 4%.
-What is the value of mode obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]
A) $ 6,553.02
B) $ 5,848.24
C) $ 5,281.79
D) $ 7,025.86
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Use the table below to answer the
Q15: Use the table below to answer the
Q16: Use the table below to answer the
Q17: Use the table below to answer the
Q18: Use the table below to answer the
Q20: Use the table below to answer the
Q21: Use the table below to answer the
Q22: Use the table below to answer the
Q23: Use the table below to answer the
Q24: Use the table below to answer the