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

question 12

Multiple Choice

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 standard deviation obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]

• A)$ 1,346.78
• B)$ 1,890.25
• C)$833.19
• D)$ 1,578.64

---

Definitions:

Patent

A legal right granted by the government to an inventor, giving exclusive ownership of an invention for a certain period of time, prohibiting others from making, using, or selling it.

Copyright

Legal protection granted to the creators of original works, preventing unauthorized reproduction or distribution for a certain period.

Trademark

A sign, symbol, word, or phrase legally registered or established by use as representing a company or product.

Architects' Fees

These fees are payments made to architects for their services in designing buildings and supervising construction projects.