Build an @RISK simulation model with 1000 iterations to answer the following questions:

a) What is the mean percent return? Rounded to the one decimal place (i.e. 14.4)

b) What is the probability that Mrs. Smarts portfolios annual return will exceed 20%? Answer in a probability rounded to 2 decimal places. (Not a percentage.)

c) What is the probability that Mrs. Smarts portfolio will lose money during the course of a year. Answer in a probability rounded to 2 decimal places. (Not a percentage.)

Please show the excel and the formulas you used

Suppose that Ms. Smart invests 25% of her portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the first table below. The correlations between the annual returns on the four stocks are shown in the second table below. Stdev 11% Distributions of returns Mean Stock 1 8% Stock 2 6% Stock 3 10% Stock 4 9% 7% 19% 10% Correlation matrix Stock 1 Stock 2 Stock 3 Stock 4 Stock 1 1.00 0.75 0.70 0.60 Stock 2 0.75 1.00 0.80 0.50 Stock 3 0.70 0.80 1.00 0.65 Stock 4 0.60 0.50 0.65 1.00 Suppose that Ms. Smart invests 25% of her portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the first table below. The correlations between the annual returns on the four stocks are shown in the second table below. Stdev 11% Distributions of returns Mean Stock 1 8% Stock 2 6% Stock 3 10% Stock 4 9% 7% 19% 10% Correlation matrix Stock 1 Stock 2 Stock 3 Stock 4 Stock 1 1.00 0.75 0.70 0.60 Stock 2 0.75 1.00 0.80 0.50 Stock 3 0.70 0.80 1.00 0.65 Stock 4 0.60 0.50 0.65 1.00