Question: For Monte Carlo simulation we need to produce randomly generated returns to create a price series. We assume that the log returns will follow a

For Monte Carlo simulation we need to produce randomly generated returns to create a price series. We assume that the log returns will follow a Normal distribution with mean of zero and standard deviation of 12% p.a. We start by generating a random number from a uniform distribution with the value 0.3. What is the simulated monthly log return?

a. -0.0472

b. -0.0866

c. -0.0182

d. -0.0629

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