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

question 48

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 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

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Definitions:

Attribute

Each characteristic or quality of a particular entity.

Particular Entity

A specific thing or being, especially one that is distinct among other similar entities.

Foreign Key

A field (or group of fields) in one table that uniquely identifies a row (or record) of another table.

Class Table: PID

A data table in a database or information system that organizes information based on a primary identification key, often found in object-oriented programming and database management.