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

question 16

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 coefficient of variation obtained from the simulation results for maximizing the total expected return? [Hint: Choose the approximate value.]

• A)1.2451
• B)0.4865
• C)0.8917
• D)0.1268

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Definitions:

Industry Sales

The total revenue generated within a specific industry from the sale of goods and services.

Top Firms

Leading companies in a particular industry, market, or sector based on metrics such as revenue, market share, or innovation.

Percentage Share

A fraction of a whole, expressed as a percentage, representing a part of a total amount or quantity.

Industry Sales

The total revenue generated from all goods and services sold within a specific industry over a certain period.