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

question 19

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 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

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Definitions:

Accounts Payable

Funds that a company owes to its suppliers for products or services that have been delivered but remain unpaid.

Journalizing

The act of recording business transactions in the journal, forming the initial step of the accounting cycle.

Posting Process

The act of transferring entries from a journal to the corresponding accounts in the ledger.

Balance Incorrectly

This term does not align with a standard accounting key term, so its accuracy as a finance or accounting term is questionable. NO.