An investor wants to invest $ 3 0 0 , 0 0 0 in a portfolio of
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Question:
An investor wants to invest $ in a portfolio of three mutual funds. The annual fund returns are normally distributed with a mean of and standard deviation of for the shortterm investment fund, a mean of and standard deviation of for the intermediateterm fund, and a mean of and standard deviation of for the longterm fund. An initial plan for the investment allocation is in the shortterm fund, in the intermediateterm fund, and in the longterm fund.
a Use Analysis ToolPak, with a seed of to develop a Monte Carlo simulation with trials to estimate the mean ending balance after the first year.
Note: Round the final answer to two decimal places.
b If the allocation is changed to shortterm, intermediateterm, and longterm, estimate the ending balance after the first year.
Note: Round the final answer to two decimal places.
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