Simulate Amanda's Portfolio Over the Next 30 Years and Determine

question 67

Essay

Simulate Amanda's portfolio over the next 30 years and determine how much she can expect to have in her account at the end of that period.At the beginning of each year,compute the beginning balance in Amanda's account.Note that this balance is either 0 (for year 1)or equal to the ending balance of the previous year.The contribution of $5,000 is then added to calculate the new balance.The market return for each year is given by a normal random variable with the parameters above (assume the market returns in each year are independent of the other years).The ending balance for the each year is then equal to the beginning balance,augmented by the contribution,and multiplied by (1+Market return).

---

Definitions:

Birth Process

The series of events and stages that lead to the delivery of a baby, from the onset of labor to the delivery.

Second Trimester

The period in pregnancy from the 13th to the 26th week, marked by significant growth and development of the fetus.

Fetal Activity Level

The measure of movement and general activity of a fetus inside the womb, which can be an indicator of health and vitality.

Ounces

A unit of weight in the avoirdupois, Troy, and apothecaries' systems, equivalent to 1/16 of a pound.