Develop a simulation model large-cap index fund

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Question: Investment A is a large-cap index fund, which has had an average annual growth over the past 10 years of 6.63% with a standard deviation of 13.46%. Investment B is a mid-cap index fund with a 10-year average annual growth of 9.89% and standard deviation of 15.28%. Finally, Investment C is a small-cap Index fund with a 10-year average annual growth rate of 8.55% and a standard deviation of 16.90%. Fifty percent of his contribution is directed to Investment A, 25% to Investment B, and 25% to Investment C. His current salary is $48,000 and based on a compensation survey of financial institutions, he expects an average raise of 2.7% with a standard deviation of 0.4% each year. Develop a simulation model to predict how much he will have available at age 60.

Reference no: EM131439784

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