Question: Make the following changes to the calibration variables: Return % Inv1 Inv2 Inv3 Inv4 Inv5 Average 7.85 10.35 12.85 15.68 18.38 Boom economy is 25%

Make the following changes to the calibration variables:

Return %

Inv1

Inv2

Inv3

Inv4

Inv5

Average

7.85

10.35

12.85

15.68

18.38

Boom economy is 25% above Average and Bust economy is 35% below average.

Desired retirement salary $85,000

All other variables remain unchanged

  1. What is the total withdrawal needed to pay the tax?

  2. What is the Expected Return on Market Portfolio?

  3. What is the standard deviation of the portfolio?

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