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

For Monte Carlo simulation we need to produce randomly generated returns to create a price series. We assume that the monthly log returns will follow a Normal distribution with mean of zero and standard deviation of 2% per month. We start by generating a random number from a uniform distribution with the value 0.8. What value is closest to the simulated monthly log return?

a. 0.84

b. 0.02

c. 0.82

d. 0.06

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