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 the mean obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]
A)$ 5,876.28
B)$ 6,570.42
C)$ 7,257.45
D)$ 5,178.84

Question

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 the mean obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]
A)$ 5,876.28 
B)$ 6,570.42 
C)$ 7,257.45 
D)$ 5,178.84

Quizplus · Accepted Answer

The mean value obtained from the simulation results for maximizing the total expected return is approximately $6,570.42.

Use the Table Below to Answer the Following Question(s)