Marcus is 25 years old. He has a new job and intends to save $10,000 today and

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Marcus is 25 years old. He has a new job and intends to save $10,000 today and in each of the next 34 years (35 deposits altogether). He has decided on an investment policy in which he invests 30% of his assets in a risk-free bond with 3% continuously compounded annual interest and the remainder in the market portfolio that has lognormal returns ? = 12% and ? = 35%. Write a spreadsheet showing Marcus?s accumulation by the time he is 60. A sample output is given below:

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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