Calculate the investments through model, Basic Statistics

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.

 

Posted Date: 3/7/2013 5:05:20 AM | Location : United States







Related Discussions:- Calculate the investments through model, Assignment Help, Ask Question on Calculate the investments through model, Get Answer, Expert's Help, Calculate the investments through model Discussions

Write discussion on Calculate the investments through model
Your posts are moderated
Related Questions
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

Definition of brand loyalty is termed as the commitment towards a particular brand. Brand loyalty is the perception of a brand in consumer’s mind which is used as leads him/her to

We find the correlation coefficient and plot the scatter plot using excel as follows:   Time in Waiting Room      Heart Rate

Continuous probability distributions: Procurement and working capital analysis – Normally distributed random variables and their transformation Procedures The data is measure

I have statistic assignment can do it at 2.30 H, because I don''t have time

LINEAR POWER SUPPLY (JPG) The Goodwill GPC3030D power supply is an example of a linear power supply. Discoveries that were made in researching this power supply are things such

From random sample of 48 days in a recent year, U.S. gasoline prices had a mean of $3.63. Assume the population standard deviation is $0.21?


comulativefrequencydistribution

WHAT IS THE RELATIONSHIP BETWEEN REGRESSION COEFFICIENT BYX BXY AND CORRELATION COEFFICIENT R?