Question: 3. The returns on a fund are normally distributed. At the end of year t, the fund has a value of 500,000. At the end

 3. The returns on a fund are normally distributed. At the

3. The returns on a fund are normally distributed. At the end of year t, the fund has a value of 500,000. At the end of year, the fund manager wishes to withdraw 50,000 for further funding, but is reluctant to tap into the 500,000. There are three possible investment options as shown in below table. Complete the table below and suggest which option is most preferable? Please show all calculation and steps. (14 marks) R = ? Expected Return Standard Deviation SFRatio P(R

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