Obtain Another Set Random Numbers by Pressing the F9 (Recalculate)key

question 51

Essay

Obtain another set random numbers by pressing the F9 (recalculate)key.Do your results change significantly? Do the changes match your expectations? Explain your answer.
Suppose you are going to invest equal amounts in three stocks.The annual return from each stock is normally with mean 0.01 (1%)and standard deviation 0.06.The annual return on your portfolio,the output variable of interest,is the average of the three stock returns.Run @RISK,using 1000 iterations,on each of the scenarios described in the questions below,and report few results from the summary report sheets.

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Definitions:

Cafeteria Compensation Plans

Employee benefit plans that allow workers to choose from a variety of pre-tax benefits to create a package that best suits their needs.

Contingent Time Off

Time off from work that is not planned in advance and depends on certain conditions or occurrences, such as emergencies or unexpected events.

Perceived Inequity

A feeling of unfairness experienced when an individual perceives a disparity between their inputs and outputs compared to others in a similar situation.

Cafeteria Compensation Plan

A flexible employee benefits plan allowing employees to choose from a variety of pre-tax salary options and benefits.