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

---

Definitions:

Thoracic Cavity

The chamber of the human body located between the neck and the abdomen, encased by the ribs, sternum, and vertebral column; it contains the lungs and heart.

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, producing a lubricating fluid to reduce friction from muscle movement.

Hypothalamus

The hypothalamus is a small but crucial part of the brain that regulates many bodily functions, including temperature, hunger, and hormone release.

Skeletal Muscle

A type of muscle that is attached to bones and is involved in facilitating movement through contraction.