Calculate the investments through model, Basic Statistics

Assignment Help:

Anna is considering investing $150,000 by dividing it into three investments. But she is not sure how much to put in each one. The first investment is known to follow a uniform distribution with a rate of return that varies from -2% to 10%. The second investment follows a normal distribution with an average rate of return of 12% and a standard deviation of 6%. The third investment has a constant return of 6%.

(a)  Construct a computer model to simulate Anna's investments for a 20 year period. Assume that the balances are cumulative. Include as input parameters the amounts invested in each type of investment. Try your simulation model using $50,000 in each investment. The simulation should keep track of the combined balance.

(b)  Use data table to repeat the simulation designed in part (a) 300 times and record the results.

 


Related Discussions:- Calculate the investments through model

Financial accounting, During October, Alcorn Company had 81,250 of cash rec...

During October, Alcorn Company had 81,250 of cash receipts and 83,688.00 of cash disbursements. The October 31 cash balance was 14,060. Determine how much cash the company had at

Pearsons chi square, difference between tests of goodness of fit & tests of...

difference between tests of goodness of fit & tests of independence

Quartiles and percentiles, Quartiles and Percentiles Percentile can ...

Quartiles and Percentiles Percentile can be explained as : a measure this tells us what is the percent of the total frequency scored at or below the measure. Quartiles

#title.Arithmatic mean., If the mean of first 5 no. is 60 and mean of last ...

If the mean of first 5 no. is 60 and mean of last 5 no. is 55 then what is the 5th no.

Statistics, Mention the characteristics of Statistics. Explain any two appl...

Mention the characteristics of Statistics. Explain any two applications of Statistics.

Projectile, a ball is projected so as to attain a maximum range. Find the m...

a ball is projected so as to attain a maximum range. Find the maximum height attained if initial velocity is u

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd