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

.., what is probabality

what is probabality

Cost accounting , is direct costing variable, relevant or prime costing

is direct costing variable, relevant or prime costing

Determine the probability, Question 1: A mail-order firm has a circular...

Question 1: A mail-order firm has a circular which elicits a 10% response rate. Suppose 20 of the circulars are mailed as a market test in a new geographic area. Assuming that

Kolmogorov test, how can i get a free software to run a kolmogorov test?

how can i get a free software to run a kolmogorov test?

Histogram and the boxplot, A study done at the University of Maryland (cite...

A study done at the University of Maryland (cited in Weiss, Introductory Statistics, 7th ed, 2005) measured the body temperatures of 93 healthy humans. On the frequency- histogram

Accounts payable in accounting, Volumes due to personal individuals or comp...

Volumes due to personal individuals or companies for products and/or services obtained by the state. Records Due does not involve amounts due to other companies, resources, or othe

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