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 mean absolute deviation obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.] A) $ 887.25 B) $ 735.86 C) $ 643.69 D) $ 967.36](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 mean absolute deviation obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]
A) $ 887.25
B) $ 735.86
C) $ 643.69
D) $ 967.36
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Use the table below to answer the
Q2: Use the table below to answer the
Q3: Use the table below to answer the
Q4: Use the table below to answer the
Q5: Use the table below to answer the
Q7: Use the table below to answer the
Q8: Use the table below to answer the
Q9: Use the table below to answer the
Q10: Define a chance constraint.
Q11: Use the table below to answer the